2017 - Commentary on first half financial results

Highlights

From an underwriting profitability perspective, 2017 will likely turn out to be a tough year. The first half of 2017 produced a $4.5 billion underwriting loss. Although some of this is attributable to 2017:Q1 results, the second quarter of 2017 also produced an underwriting loss. And thanks mainly to Hurricanes Harvey and Irma, the third quarter will likely deliver a third straight quarter of underwriting losses, making it especially hard to end the year with an underwriting profit.

2017 - Commentary on first quarter financial results

For the property/casualty (P/C) insurance industry in the first quarter of 2017, the financial weather report (compared with 2016:Q1 and 2015:Q1) was cloudy with occasional bright spots. The clouds: higher CAT claims leading to a deteriorating combined ratio; and continued drop-off in investment yield resulting in a profit slump. The bright spots: stronger net written premium growth; and continued growth in policyholder’s surplus.

2016 - Commentary on year-end financial results

U.S. economic activity slowed somewhat in 2016 compared to 2015—real GDP rose by 1.6 percent in 2016 vs. 2.6 percent in 2015—and the property/casualty (P/C) insurance industry’s results followed suit. The industry’s $42.6 billion profit for the full year 2016 was 25 percent lower than the $56.8 billion profit for 2015.

2016 - Commentary on first nine months financial results

The property/casualty industry’s financial results for the first three quarters of 2016 were by most measures less successful when compared to the comparable period for 2015.

2016 - Commentary on first half financial results

For three years in a row, quarter after quarter, property/casualty insurers produced an underwriting profit. The streak continued in the first quarter of 2016, but appears to have ended in the second quarter.

2016 - Commentary on first quarter financial results

The property/ casualty insurance industry was profitable and growing in the first quarter of 2016.