For the first time in four years, the U.S. property/casualty in
dustry will finish a year with an underwriting profit.
AM Best in a “First Look” at U.S. P/C financial results said the industry left 2
024 with a $22.9 billion
net underwriting gain. The industry booked an underwriting loss of $21.3 billion in 2023.
The industry combine
d ratio for 2024 was 96.6 compared to 101.6 the year prior.
Industry policyholder surplus grew about 7% in 2024 to $1.1 trillion.
Data in the special report are provided by companies that submitted year-end
statutory statements as of March 11, AM Best said. The companies account for
about 97% of industry net premiums and 96% of policyholder surplus, the rating agency added.
In a larger report on the U.S. P/C segment released in February, which includ
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ed an estimate of underwriting income for 2024, AM Be
st said the industry would take an underwriting loss of $2.6 billion—still an improvement from the loss recorded in 2023 but
far from the
agency’s early insight now of a nearly $23 billion underwriting profit. AM
rimary reason for the turnaround in underwriting results.
AM Best has said it expects the industry in 2025 to “build on its solid r
ebound” with improved underwriting and operating results, even as insurers field more losses from secondary p
erils and continued adverse litigation trends.
Net catastrophe losses in 2024 were about $76.3 billion compared to about $67.7
billion in 2023. AM Best said it estimates catastrophe losses added 8.7 points to the 2024 combined ratio.
