Private U.S. real estate and non-life insurance companies ‘net income rose slightly to $ 61.9 billion in 2021 from $ 60.3 billion in 2020, but the groups’ total expense ratio declined to 99.6% from 98.6%, according to a report released on Thursday by Verisk Inc. and the American Property Non-life Insurance Association.
The Group saw $ 3.8 billion in net losses in 2021 after netting $ 5.2 billion in net losses in 2020, the report said. An insurance loss of $ 11.3 billion in the third quarter more than fully offset issue gains in the second quarter.
Net income premiums increased by 9.2% to $ 710.6 billion from $ 650.4 billion in 2020, while insurance companies’ net investment income rose to $ 54.3 billion from $ 51
.7 billion.However, losses and loss adjustment costs increased by 11.1% to $ 496.9 billion, while earned premiums increased only 7.4% to $ 685.0 billion.
“Although insurance companies’ net earned premiums increased by 7.4%… losses and loss adjustment costs increased at an even faster rate to 11.1% in 2021, causing an insurance loss for the year,” Robert Gordon, senior vice president, policy, research & international for APCIA, said in a statement with the report.
While private U.S. insurance companies’ losses and loss adjustment costs from disasters fell to $ 56.3 billion in 2021 from $ 61.4 billion in 2020, losses and loss adjustment costs for non-disaster losses jumped 14.2% to $ 440.6 billion from $ 385.8 billion USD, led by personal car losses.
Excluding insurance companies for mortgages and financial guarantees, the commercial insurance companies ‘total cost ratio improved by 4.5 percentage points to 96.3% in 2021, while the private insurance companies’ total cost percentage decreased by 6.9 percentage points to 102.7%.
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