OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. property/casualty industry reported a $2.3 billion net underwriting loss in the first nine months of 2016 and a 26.8% decline in net income compared with the same period in 2015, according to preliminary financial results. The nine-month underwriting loss is the industry’s first in four years. This financial review is detailed in a new Best’s Special Report, titled, “A.M. Best First Look – 3Qtr 2016 U.S. Property/Casualty Financial Results,” and the data is derived from companies’ statutory statements that were received as of Nov. 16, 2016, representing an estimated 96% of the total property/casualty industry’s net premiums written.
The report also states that the industry’s reported combined ratio deteriorated 2.7 points from the prior year period to 99.7, marking the worst nine month period-to-period comparison in the last four years.
Despite the nine-month net income decline to $32.1 billion from $43.9 billion in the previous year, policyholders’ surplus reached a record $676.6 billion at the end of September 2016, driven by modest unrealized capital gains, $2.7 billion of contributed capital, reduced stockholder dividends and a considerable reduction in other surplus losses. Growth in net premiums written also continued in 2016 but, at 2.8%, was lower than the 4.5% and 3.3% increases reported in the first nine months of 2014 and 2015, respectively.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=256188.
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