August 26, 2019 09:30
A preliminary analysis of the american market for insurance by the firm of rating A.M. Best shows that an increase of the losses has managed to reduce the net benefits of the subscription of 9.6% in the first half of 2019. And this, despite a 3.8% increase in net premiums earned and expenses underwriting stable.
The combined ratio for the sector also deteriorated from one per cent to 97.4 per cent compared to the same period of 2018.
“We believe that the catastrophe losses accounted for 4.5 percentage points of the combined ratio for the first six months of the year, up from 4.2 percentage points estimated for the same period of the previous year “, explain the authors of the analysis.
The investment income to the rescue
These decreases were, however, offset by an increase of 432 million u.s. dollars (US$ M) investment income, reported A.M. Best. This ensures that the income from operations before income taxes remained unchanged compared to last year to 33.1 billion us dollars (G$ US) in the first half of 2019.
However, the firm’s rating highlights that a decrease in realized gains of capital of 1.2 billion US$ has led to a decline of 2.4 % of the net profits, which amounted to 32.7 billion US dollars.