U.S. P/C Net Increased 69 Percent in 2018
A.M. Best reports that the year-end statutory filings for the U.S. property/casualty (P/C) industry showed a year-over-year 69 percent increase in net income to $59.2 billion in 2019, owing to lower losses from catastrophic events, favorable development of prior years’ loss reserves and higher net investment income.
The new Best’s Special Report, titled, “Generally Favorable 2018 Statutory Results for Property/Casualty Insurers,” states that net premiums written (NPW) also rose significantly, due in part to the 2017 Tax Cut and Jobs Act (TCJA). Incurred losses grew 4.4 percent, reflecting significantly lower catastrophe losses that were more than offset by higher retained losses because of reinsurance changes. The lower catastrophe levels also drove a slight decline in loss-adjustment expenses.