P/C Insurers Report 66 Percent Increase in Net Income
Private U.S. property/casualty insurers saw their net income after taxes rise to $60 billion in 2018 from $36.1 billion in 2017-a 66.3 percent increase-helped by double-digit premium growth and a significant decline in catastrophe losses, according to Verisk (Nasdaq:VRSK), a leading data analytics provider, and the American Property Casualty Insurance Association (APCIA).
Net written premiums grew 10.8 percent to $612.6 billion in 2018 due to organic premium growth and changes that multiple insurers made to their reinsurance arrangements. Losses and loss adjustment expenses (LLAE) from catastrophes declined to $43.3 billion in 2018 from $49.5 billion a year earlier.
“The insurance industry continued to perform well in 2018, helped by double-digit growth in premiums,” said Neil Spector, president of ISO, a Verisk business. “Results were also helped by a decline in catastrophe losses. Catastrophe losses in 2018 were not low by any measure, due to two hurricanes and California wildfires, but those losses still paled in comparison to the losses caused by Hurricanes Harvey, Irma, and Maria in 2017.”