The U.S. property/casualty industry is expected to report that 2018 was its third consecutive year with an underwriting loss. A new A.M. Best analysis projects an estimated net underwriting loss of $12.1 billion in 2018, which follows a $25.3 billion loss in 2017.
The underwriting loss in 2017 was $18 billion more than the underwriting loss in 2016.
The expected 2018 loss can be attributed primarily to catastrophes that included a pair of major fourth-quarter events. According to A.M. Best, while these 2018 losses declined by more than half from 2017, they remained elevated over historic averages.
The Best’s Market Segment Report, titled, “U.S. Property/Casualty 2019 Review & Preview,” says the P/C industry’s combined ratio is estimated at 101.5 for 2018, with U.S. catastrophe losses generating 6.2 points toward that figure.
For 2019, A.M. Best projects the combined ratio to improve slightly to 101.2, based on the expectation of more normalized losses.
Read more on this at The Insurance Journal.