Private US P&C insurance industry reports 27.5% drop in net income

Written by Adam Cadle

09/02/2021

The private US P&C insurance industry reported a 27.5% drop in net income during the first nine months of 2020 to $35.1bn, according to data analytics provider Verisk and the American Property Casualty Insurance Association (APCIA).

COVID-19 and a record number of catastrophes in the US impacted the industry. The written direct premium growth slowed to 2.3% for the first nine months of 2020 compared to 4.8% in the same period in 2019.

For Q3 2020, after taxes, insurers’ net income fell to $10.9bn from $15.4bn in Q3 2019, and their combined ratio deteriorated to 101.3% from 98.8% in the same period a year earlier.

Net written premiums rose $5bn, or 3%, to $171.3bn in Q3 2020 from $166.2bn in Q3 2019.

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