AM Best: US P/C Industry Reverses Nine-Month Underwriting Loss

Growth in net earned premiums outpaced a slight increase in losses and loss adjustment expenses to result in the U.S. property/casualty industry posting a nine-month 2024 underwriting profit of $4.1 billion versus a loss of $32.1 billion last year.

According to AM Best’s look at industry financial results after nine months of 2024, U.S. P/C insurers logged 9.5% growth in net earned premiums to offset a 1.3% increases in losses and LAE and 9.2% increase in other underwriting expenses.

A turnaround in personal lines was primarily responsible for returning industry underwriting results to profit, AM Best said. The rating agency recently revised its outlook of the U.S. personal lines segment to stable from negative.

The P/C industry’s combined ratio was 97.9 after nine months compared to 103.7 a year ago, as catastrophe losses accounted for an estimated 8.8 points in 2024 versus about 10 points in 2023. Without $8.5 billion of favorable reserve development during the first nine months, the combined ratio would be 99.2.

Net income about doubled to $130 billion compared to $64.4 billion a year ago. AM Best pointed out that the result was bolstered by realized capital gains at three Berkshire Hathaway companies.