OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. property/casualty (P/C) industry improved its net underwriting income in 2019 by $4.9 billion compared with 2018 as a 4.7% growth in net premiums earned offset increases in incurred losses and loss adjustment expenses, underwriting expenses and policyholder dividends. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 12-Month 2019 Property/Casualty Financial Results,” and the data is derived from companies’ 2019 annual statutory statements received as of March 4, 2019, representing an estimated 97% of the total P/C industry’s net premiums written.
The P/C industry’s 2019 combined of 98.8 was an improvement over the 99.3 recorded in the previous year. AM Best estimates that catastrophe losses accounted for 4.2 points on the 2019 combined ratio, down from an estimated 5.9 points in 2018.
With net investment and other income remaining flat with the prior year, the improvement in underwriting income to $4.1 billion from a loss of $800 million in 2018 was the main driver in pre-tax operating income increasing by 10.0% to $61.8 billion. A 7.3% decrease in realized capital gains and a 17.2% increase in income taxes resulted in 2019 industry net income increasing by 6.1% to $63.2 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=295239.
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