Combined ratio improves year-over-year for U.S. P&C insurers

The U.S. property and casualty insurance industry showed improvement in the first quarter of 2013 compared to the first quarter of 2012, according to a report announced Monday by A.M. Best Company Inc.

In the U.S. P&C sector, net premiums written were $118.2 billion in the first quarter of 2013, up 4.6% from $113.2 billion in the first quarter of 2012. All figures are in U.S. currency. 

The combined ratio — at 97.4 in the first quarter of 2012 — dropped to 94.7 in the first quarter of this year, Oldwick, N.J.-based A.M. Best stated.

“Among the major lines of insurance, only two – medical professional liability and accident and health (A&H) – showed declines in (direct premiums written) in the first quarter of 2013,” according to the report. “These lines have been consistently profitable in recent years and continue to attract competition, resulting in ongoing downward pressure on rates despite increases elsewhere in the industry.”

Net investment income in the U.S. P&C industry for the first quarter was $12 billion, unchanged from Q1 2012.

Underwriting income increased from $1.5 billion in the first quarter of 2012 to $4.6 billion this year.

In personal lines, underwriting income for the first quarter of 2013 was $2.2 billion, compared with $1.6 billion for the same period in 2012.

“Pricing in personal lines remains strong, with the homeowners and personal automobile liability lines both showing solid increases in direct premiums written (DPW),” the company said. “Several commercial lines showed strong increases in DPW, notably workers’ compensation (11.1%), general and products liability (8.3%), commercial multiperil (7.8%) and commercial auto liability (7.6%).”