According to preliminary financial results, the US property and casualty insurance industry (P / C) saw its net technical income fall by 53% in the first quarter of 2021 compared to the same period of the previous year. This financial review is detailed in a new Best’s special report, “First Look: Three-Month 2021 Property / Casualty Financial Results”, and the data is derived from the 2021 interim statutory declarations of companies received on June 1, representing approximately 99% of the total P / C. industry net premiums written.
According to the report, the industry P / C combined ratio deteriorated to 96.4 from 95.0 in the first quarter of 2020. Catastrophe losses were around 6.9 points from the three-month combined ratio. 2021, compared to 3.3 points estimated in 2021. first quarter 2020. Despite a 2.3% growth in net earned premiums during the quarter, the increase in incurred claims, claims settlement costs (LAE) and technical costs, as well as a strong increase of 72% of the contributions to policyholders, led to the fall in technical income.
With a slight drop in net investment, the drop in technical income led to a 12.9% drop in operating income before tax. While tax burdens fell 18.4% and realized capital gains increased $ 4.1 billion, the industry’s net income increased 11.4% from the same period of the previous fiscal year to reach $ 20.2 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=309265.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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