S&P Report: Homeowners Insurers Net Combined Ratio Over 110

In 2023 homeowners insurers had the worst underwriting results they’ve seen in the last 10 years. S&P Global Market Intelligence said the net combined ratio for homeowners lines — excluding policyholders’ dividends — was 110.5.

It’s the highest homeowners combined ratio since 2011’s ratio of 121.9.

The usual culprits are blamed — inflation and a record number of billion-dollar losses from events like Hawaii’s disastrous wildfire on Maui. Net underwriting losses were $15 billion in 2023. That compares to 2022’s loss of $5.9 billion.

  • Net losses and adjustment expenses rose to $101.3 billion.
  • That’s an increase of 21.3% over 2022’s figures.
  • Net premiums earned rose 10.8% to $119.9 billion.
  • Other underwriting expenses totaled $33.4 billion compared to $30.6 billion in 2022.

Only Chubb and Amica Mutual Insurance saw their combined ratios drop under 100. The other insurers in the 20 largest all saw their combined ratios top that number. Chubb’s combined ratio was 89.6 in 2023 and Amica’s was 97.4.

In total, homeowners insurers saw direct written premiums hit $152.5 billion. That compares to $133.8 billion in 2022.

Here’s more from the report:


Loss ratio: 75.5

LAE ratio: 9.0

Expense ratio: 26.1

Net combined ratio: 110.5


Loss ratio: 68.1

LAE ratio: 9.1

Expense ratio: 26.9

Net combined ratio: 104.0

Going back to 2004

Loss ratio: 56.6

LAE ratio: 9.9

Expense ratio: 28.7

Net combined ratio: 94.2

Source link: Insurance Journal — https://bit.ly/3yAZna5

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News