2 July 2019 13:30
Photo : Freepik
The year 2018 has proven to be one of the most profitable of the last five years for property and casualty insurers, americans, while they have recorded a net profit of 59.2 billion dollars (G$ US). It is a leap of 69 % compared to 2017, reports the firm’s rating A.M. Best.
This growth is a combination of better investment income and improved underwriting results. These two factors, plus a decrease in taxes, lead to the highest level of net income reported by the industry since 2014.
Fall in catastrophe losses
Disaster losses have also largely improved compared to 2017. These have fallen by 34 %, from 45 billion to US$ 29.6 billion US dollars in 2018. A.M. Best explains, however, that she expected such a result, because 2017 was the year where the insurers have suffered the largest catastrophe losses in history.
“Representing 5.7 points in the combined ratio, the losses related to disasters of 2018 have remained high relative to historical trends, a little higher than the expectations of 5 points for a “normal” year “, explained the analysts of the firm of rating.
The property and casualty insurers, american, all segments combined, have recorded a combined ratio of 99.6% in 2018, a best brand that the 104,4 % in 2017.