A group of 17 U.S. property/casualty (P&C) reinsurers recorded an improved combined ratio of 96.2% for the first nine months of 2019, driven by improvements in both the expense ratio and loss ratio when compared with the same period in 2018, according to analysis by the Reinsurance Association of America (RAA).
The group of reinsurers surveyed by the RAA reported a strengthening in the combined ratio when compared with the 98.2% reported for the first nine months of 2018.
At 72% and 24.3%, both the loss ratio and expense ratio improved, respectively, against the 72.5% and 25.7% posted in the same period last year. As a result, the group of reinsurers recorded a combined underwriting gain of more than $1.1 billion in the period, which is a significant improvement on the $385 million underwriting loss posted in the previous year.
According to analysis by the RAA, during the period, the group’s gross premium written remained relatively flat year-over-year, at $55.5 billion, while net premiums written reached $43.4 billion, up from the $43.1 billion posted a year earlier.
Loss and loss adjustment expenses reached $29.9 billion in 2019, which is up slightly on the $29.8 billion reported for the first nine months of 2018.
Net investment income also improved for the group year-over-year, reaching $8.5 billion in the nine month period ended September 30th, 2019 versus $7.9 billion in the same period in 2018.
Overall, the group of 17 U.S. P&C reinsurers analysed by the RAA recorded net income of $10.4 billion in the first nine months of 2019, compared with $8.4 billion for the same period in 2018.
Policyholder surplus also increased, reaching $187.2 billion in 2019 versus $180.2 billion in the same period last year.
