U.S. Real estate / accident insurance companies will see gains slow in the second half of 2021 as Hurricane Ida-related losses and other natural disasters yield results, Fitch Ratings Inc. said Thursday. the first half of the year when insurance performance benefited from higher commercial pricing, declining effects of pandemic-related losses and oversized investment gains, Fitch said.
The industry is positioned for year-round results that exceed 2020, but further profit expansion will be "dampened by recent natural disaster events, including losses related to Hurricane Ida," said the New York-based credit rating agency. , Sade Fitch.
While the pace of price changes is slowing, short-term earned premium growth will drive further improvement of the loss ratio in commercial lines t through 2022, it said. Favorable previous subscription period loss reserve development will also continue to increase the overall result.
For the six months ended June 30, the real estate / claims industry's net income increased by 56% compared to the previous year to $ 38 billion. Net written premiums increased by 7% year-on-year, with "very strong growth" in commercial debt segments, Fitch said. The insurance combination ratio showed "modest improvement" to 97.1