The US real estate / accident insurance company achieved a profitable development in 2020 the first half of the year even when the industry's net profit fell 26 percent compared to the first half of 2019, according to Dr. Steven Weisbart, Chief Economist, Insurance Information Institute (Triple-I).
“The first half of 2020 was by most measures financially successful for insurers who wrote P / C insurance. Two measures of the industry's health – revenues and capital – increased during the first half of 2020, stated Dr. Weisbart in a comment he wrote after the publication of a report this week by the Verisk and American Property Casualty Insurance Association (APCIA). P / C insurers write insurance coverage for cars, homes and companies.
Net profit after tax for P / C insurers was $ 24.3 billion in the first half of 2020, while the same figure was $ 32.8 billion in the first half of 2019. Contribution to that reduction was $ 1.4 billion in realized capital losses on insurance investments in the first half of 2020, a fluctuation from $ 4.3 billion in realized capital gains a year earlier, Verisk and APCIA found.
The uncertainty in the insurance and capital market due to COVID-19 could be seen in a number of ways, Dr. Weisbart's comment noted that as disaster-related claims payments increased in the first half of 2020, U.S. auto insurance companies offered their policyholders pandemic-related premium relief, and policyholder surplus fell to $ 772 billion at the end of the first quarter of 2020 before recovering to $ 826 billion by the end of 2020. first half. The policyholders' surplus is the amount that remains after the insurance industry's cumulative liabilities have been deducted from its assets.