U.S. Property and Casualty Insurers Achieve $3.8 Billion Underwriting Gain in H1 2024

The U.S. property and casualty (P&C) insurance industry posted a remarkable $3.8 billion net underwriting gain in the first half of 2024, a significant recovery from the $24 billion loss in the same period last year, according to AM Best. The industry benefited from an 11.3% increase in net earned premiums, which helped offset rising incurred losses and underwriting expenses. Catastrophe-related losses, which weighed heavily on the prior year’s performance, were less severe in 2024, contributing to the improved combined ratio of 97.7.

The personal lines segment was a key contributor to the underwriting gain. Favorable reserve developments and a surge in net investment income further boosted the industry’s performance, driving pre-tax operating income to $47.3 billion, a 374.4% increase from 2023. Additionally, a significant $50 billion capital gain at National Indemnity Company propelled net income to $97.6 billion, a tenfold increase from the previous year.

The industry surplus rose to $1.1 trillion, reflecting the strong financial results, despite unrealized losses and stockholder dividends partially offsetting some of the gains. This rebound highlights the resilience of the P&C sector as it continues to recover from last year’s catastrophic losses.