US P&C industry’s estimated net investment income grows to $73bn

Written by Adam Cadle

07/03/2023

The US P&C industry’s estimated net investment income grew $16.9bn, to an estimated $73bn in 2022, AM Best has said.

AM Best said, however, that this result was significantly impacted by a $10.8bn intercompany distribution at one very large reinsurer during the year.

Substantial unrealised losses, estimated at $111bn, were the primary driver for the 9.4% decline in the P&C segment’s policyholders’ surplus at year-end 2022.

“Despite the unrealised losses and healthy 8.8% growth in net premiums written, the ratio of net writings to surplus is estimated to have increased slightly to 0.8 at year-end 2022, indicating the industry’s solid capital position,” AM Best Managing Director John Andre said.

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