US P&C industry suffers $26.5B underwriting loss in 2022

The industry took significant hits from personal lines losses and the impact of Hurricane Ian, as combined ratio deteriorated from 99.7% in 2021 to 102.7% in 2022.

Despite an 8.4% growth in net earned premiums and a 21.4% decline in policyholder dividends, the industry saw a 13.9% increase in incurred losses and loss adjustment expenses (LAE), as well as a 6.2% hike in other underwriting expenses.

Additionally, net income slid 31.3% to $42 billion, with tax expenses down 35.2% and realized capital gains down 83.2%. The industry’s surplus also declined 6.7% to $951.9 billion from the end of 2021.


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