Property and casualty insurers in the U.S. saw a huge loss in underwriting in 2022. A.M. Best said it hit $26.5 billion. The good news is that it’s a $21.5 billion drop from the losses of 2021.
Personal lines losses led the pack and most of that came from big losses of Hurricane Ian. The combined ratio fell from 99.7% in 2021 to 102.7% in 2022.
What’s frustrating for insurers is the underwriting loss came in spite of an 8.4% hike in net earned premiums. However, there was also a 21.4% drop in policyholder dividends.
P&C insurers saw a 13.9% increase in incurred losses and loss adjustment expenses (LAE) and a 6.2% rise in other underwriting expenses.
Net income fell 31.3% to $42 billion. Tax expenses fell 35.2% and realized capital gains dropped 83.2%. P&C insurer surplus also saw a drop of 6.7% to $951.9 billion.
Source link: Insurance Business America — http://bit.ly/3FWlkkC