Data from the Reinsurance Association of America (RAA) shows that a group of 17 U.S. property and casualty (P&C) reinsurers recorded an improved, albeit still negative underwriting result of approximately -$412 million in 2019.
Despite remaining in negative territory, the underwriting result did improve on the $2.92 billion loss recorded a year earlier, contributing to a combined ratio of 100.3% for 2019, compared with 103.5% in 2018.
The year-on-year improvement in the combined ratio is attributable to a 75.6% loss ratio and an expense ratio of 24.7% for 2019, against ratios of 79.4% and 24.4% in the prior year, respectively.
Gross premiums written for the group of reinsurers exceeded $73.6 billion in 2019 while net premiums written hit $57.7 billion and net premiums earned reached $56.7 billion. In comparison, the group of U.S. P&C reinsurers recorded gross premiums written of $71.5 billion, net premiums of $59.3 billion, and net premiums earned of more than $58.8 billion in 2018.
According to data from the RAA, the group’s result in 2019 also included an other income loss of more than $1 billion, which compares with a loss of more than $30 million in 2018.
Overall, the group of reinsurers recorded combined net income of $11.7 billion in 2019, which is up on the $8.9 billion recorded a year earlier, reports the RAA.
At $209.9 billion, policyholder surplus increased from the $187.2 billion recorded at the end of September, 2019.
