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A.M. Best Special Report: U.S. P/C Underwriting Result Weakens, But Policyholders' Surplus Sets RecordOLDWICK, N.J. --(Business Wire)-- Increased catastrophe and non-catastrophe losses and lower levels of favorable development of prior years' loss reserves drove the U.S. property/casualty (P/C) industry to break-even underwriting results through the first six months of 2014. The underwriting results, combined with continued pressure on investment income, resulted in a 15.3% reduction in pretax operating income during the first two quarters. With realized gains also down, the industry posted net income of $27.0 billion through June 30, 2014, a 22.1% decrease from the $34.7 billion net income for the first six months of 2013, according to the latest Best's Special Report titled, "U.S. P/C Underwriting Result Weakens, But Policyholders' Surplus Sets Record." The indusry's policyholders' surplus (PHS) increased $20.0 billion during the first half of 2014, driving surplus to a record $683.1 billion. PHS was up 3.0% from year-end 2013 and up 9.3% from June 30, 2013. The industry's after-tax return on equity declined to 4.0% from 5.6% in the prior year. For purposes of this report, data for companies in A.M. Best's mortgage guaranty and financial guaranty composites are excluded. To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=228874. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. |
