The US property-casualty industry grew its net underwriting income by 28% in the first six months of the year over the first half of 2020, according to a new AM Best report.
The information is detailed in a new Best’s Special Report, titled “First Look: Six-Month 2021 Property/Casualty Financial Results.” The report’s findings are derived from companies’ six-month 2021 interim statutory statements received as of Aug. 18, representing an estimated 97% of the total P&C industry’s net premiums written.
A 5.4% growth in net earned premiums and a 55.3% decline in policyholder dividends offset increases in incurred losses and loss adjustment expenses and underwriting expenses, AM Best said. This led to the underwriting income increase.
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The industry’s combined ratio improved by 0.8 percentage points from the first half of 2020 to 96.9, with catastrophe losses representing 5.8 percentage points, down from 6.5 in the prior-year period.
The industry saw a 14.1% rise in pre-tax operating income, driven by a 6.4% increase in net investment income and an additional $1.4 billion in other income, along with the improvement in underwriting income. The industry posted net income growth of 57.9% to $38.1 billion, driven by a $10.4 billion increase in realized capital gains.
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