The US real estate / accident insurance industry experienced a net loss of $ 6.1 billion during the first nine months of 2021 when premium growth was offset by increased losses, A.M. Best & Co. Inc. said on Friday.
This can be compared to an insurance gain of $ 300 million in the first nine months of 2020, Best Data showed.
Net premiums written in the first nine months of 2021 increased by 10.8% to USD 535.4 billion and net investment income increased by 7.8% to USD 40.2 billion.
However, growth in losses and loss adjustment costs during the same period increased by 12.1% to USD 366.5 billion, which exceeded premiums and investment growth.
Underwriting costs as well. grew, 5.9%, to $ 1
The industry's total expense ratio deteriorated to 91.0% from 90.1% in the first nine months of 2020, Best data showed. The industry's policyholder surplus increased by 7.5% to USD 908.3 billion.
The data in the report comes from the companies' nine-month statutory 2021 statements received on November 17, which corresponds to an estimated 97% of the total net real estate / claims industry written net premiums, said Best.
Separately, the Reinsurance Association of America said on Friday that A survey of reinsurers' statutory insurance results showed that a group of 17 US property / accident reinsurers wrote off $ 57.3 billion in net premiums during the nine months ended September 30, 2021, up from $ 49.3 billion over the same period in 2020.
The RAA said that the total cost percentage for the group deteriorated to 100.7% from the 100.2% total cost reported for the same period in 2020.
the surplus was $ 257.6 billion, up from $ 256.8 billion in the previous quarter.