The U.S. private insurance industry saw a net loss of $26.9 billion in 2022, more than six times the $3.8 billion loss in 2021 and the largest underwriting loss since 2011, according to preliminary estimates from Verisk Analytics Inc. and the American Property Casualty Insurance Association.
The results are consolidated estimates based on annual reports filed with insurance regulators by US-domiciled private property/casualty insurers, representing about 94% of business written by US property/casualty insurers, the organizations said in a statement.
Net premium income for insurers rose to $769.68 billion in 2022, up 8.3% from 2021, and net profit fell 33.6% to $41.2 billion.
The group̵
7;s total expense ratio deteriorated to 102.7% in 2022 from 99.6% in 2021.“Hurricane Ian and the effects of inflation resulted in large losses for property insurers last year, while the severity of accidents continued to plague personal and commercial auto lines,” Neil Spector, head of insurance solutions at Verisk, said in the statement.
For the fourth quarter of 2022, industry net income fell 48% from the prior year period to $10.35 billion. Insurer surpluses “recovered slightly” from $911.7 billion at the end of the third quarter of 2022 to $952.4 billion at the end of the fourth quarter, but still trailed $1.03 trillion at the end of 2021, the statement said.
Fourth quarter net premiums increased 8.2% to $182.75 billion. The fourth quarter total expense ratio deteriorated to 104% from 100% in the fourth quarter of 2021.
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