United States P&C Industry Faced $26.5 Billion Underwriting Loss in 2022

According to companies’ annual statutory statements, in 2021 the United States property and casualty industry reported a total underwriting loss of $21.5 billion. In 2022, losses increased up to $26.5 billion. 2022’s loss represents around 96% of the property/casualty industry’s net premiums written. 

As external factors have a major impact on the industry’s health, in 2021 hurricane Ian created a disadvantage. The combined ratio rose from 99.7 all the way up to 102.7. The industry experienced an 8.4% growth in premiums, and a 21.4% decline in policyholder dividend. Despite the success, the industry still suffered the losses from the hurricane. loss adjustment expenses as well as a rise in underwriting expenses factored into the decline in profit. 

Overall, The property and casualty industry has suffered quite a bit, with capital gains down 83.2%, and net income declining by 31.3%. However; the cause of the losses isn’t just due to the hurricane. Personal auto losses have also increased, causing more market damage.