OLDWICK, N.J.--(BUSINESS WIRE)--In this episode of AMBestTV, Chris Jackson, financial analyst, AM Best, said homeowners insurance premiums for mutual property/casualty insurers in 2019 grew considerably, with a substantial increase in policyholder dividends so far in 2020. Click on http://www.ambest.com/v.asp?v=ambmutuals1020 to view the entire program.
Jackson discusses premium rebates and refunds by AM Best-rated U.S. property/casualty and mutual insurance companies amid the COVID-19 pandemic.
“This year, we have seen about several billion dollars more paid by mutual insurance companies out of policyholder dividends than in the first half of 2019,” said Jackson. “What you see is an industry that is reacting in the way that it is built: to serve its policyholders. When they have a sudden surplus of money that they got from the lower exposure of people going outside, or recurring losses and other factors, their priority is to return that money to the customers.”
Overall premiums grew modestly in 2019, but Jackson noted that the homeowners insurance line of business saw a considerable uptick.
“The biggest driver was the homeowners multi-peril line. It grew almost $3 billion over the previous year. The commercial lines also provided somewhat less of a boost, but they contributed as well,” said Jackson. He also said that the biggest contributor to surplus growth was the unrealized capital gains, which was about $20 billion of growth in 2019.
To access the related market segment report, titled, “U.S. Mutuals’ Strong Balance Sheets at the Fore Amid Pandemic,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=301305.
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