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.
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.