Underwriting income is always a concern for property-casualty insurers. Good news! Net underwriting income for P&C insurers jumped 24% in the first quarter of this year when compared to the same time period last year.
The net hit $4.2 billion.
The figures come from the A.M. Best special report First Look—3 Month Property/Casualty Financial Results. With the positives comes a negative or two. The report notes the income is up but the combined ratio fell 1.3% to 96.5. Increases in the loss and loss-adjustment expense (LAE) ratio and the underwriting expense ratio — based on net premiums written — caused the drop.
It’s 2.3% compared to the same quarter a year ago.
The Best report says catastrophe losses added three points to the quarter’s combined ratio. That’s down from an estimated 3.4% a year ago.
Net investment income rose $1.4 billion. It — added to the underwriting income rise — bumped the pre-tax operating income by 16.2% to $17.8 billion. That’s good news but a $2 billion drop in realized capital gains and income taxes staying flat led to a net income of $16.9 billion.
That’s only a $400 million jump over the first quarter of 2018.
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