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Best’s: $5.1 Billion P/C Loss in H1

Preliminary results from A.M. Best indicate that the U.S. property/casualty insurance industry posted a net underwriting loss of $5.1 billion for the first half of 2017, compared with a loss of $2 billion in the first half of 2016...
September 6, 2017

Preliminary results from A.M. Best indicate that the U.S. property/casualty insurance industry posted a net underwriting loss of $5.1 billion for the first half of 2017, compared with a loss of $2 billion in the first half of 2016. According to “A.M. Best First Look — 2Qtr 2017 U.S. Property/Casualty Financial Results,” the deterioration in underwriting losses comes amid persistent pressure on operating results.

The industry posted underwriting income of $3.1 billion for the same period two years ago. During the 2017 first half, the industry recorded a 6.1 percent increase in incurred losses and loss adjustment expenses, a 1.8 percent rise in underwriting expenses, and 3.7 percent growth in net premiums earned. The combined ratio deteriorated by 0.9 points to 100.9 during the first six months of the year, marking the worst of the last five years’ first six-month periods.

Net income declined 29 percent from $21.6 billion in the first half of 2016 to $15.4 billion, while the industry reported a record surplus of $703.4 billion.

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