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Home / Insurance / P / C insurance companies report sharp decline in first half year net income: A.M. Best

P / C insurance companies report sharp decline in first half year net income: A.M. Best



U.S. real estate / non-life insurance companies reported a 21.6% decrease in net income to $ 25.0 billion in the first half of this year, when realized capital gains fell $ 5.5 billion in the midst of the COVID-19 pandemic, A.M. Best Inc. said in a report Tuesday.

Premium loans issued to policyholders during the second quarter due to reductions in pandemic-related exposure due to home orders and government-ordered business closures drove P / C insurance guarantees and dividend expenses higher during the first half, AM Best said.

The P / C industry's insurance costs for the first half of the year increased by 5.5% when some insurance companies registered policyholder credits as a cost rather than a premium reduction, Best said.

Policyholders' dividends increased by $ 3.4 billion from the previous year ̵

1; the year when several insurance companies paid dividends in the form of dividends, Best said in the report.

Premium loans mainly affected the insurance segment for personal lines, but while expenses increased, the segment's loss percentage in the first half improved by almost six points, AM Best said.

Insurance companies in commercial lines also benefited from a reduction in the frequency of auto accidents during the pandemic, but this was offset by higher disaster losses and the effects of pandemic-related claims on loss reserves, Best said.

The best section loss ratio increased by over four percentage points during the first half of the year, compared to the same period in 2019, said Best.

The P / C industry's ratio for the first half of the year remained relatively flat at 97.6%, but disaster losses accounted for 6.5 points, up from an estimated 4.5 points in the previous year, said Best. Catalog

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