AM Best’s recent market segment report indicates a notable increase in the estimated net investment income within the US property and casualty (P/C) market, with predictions exceeding $85 billion in 2024.
In 2018, the industry’s net investment income was $57 billion, showing no significant increase until 2022, when it surged to $71.5 billion.
According to the ratings agency, net investment income is anticipated to remain relatively steady in 2023, at $75.9 billion.
However, AM Best highlights that the 2022 figures were influenced by a $10.8 billion intercompany distribution at one very large reinsurer, impacting the net investment income.
With no anticipated rate cuts until mid-year 2024, it is projected that net investment income will notably increase to $86.9 billion in 2024.
AM Best estimates “that insurers will continue to reap the benefits of appreciably higher investment yields and projects.”
