The Best’s Special Report, titled, “First Look: Six-Month 2022 U.S. Property/Casualty Financial Results,” states that a 9.3% growth in net earned premiums and a 27.7% decline in policyholder dividends were countered by a 15.8% increase in incurred losses and loss adjustment expenses (LAE) and a 7.2% rise in other underwriting expenses. The personal lines segment, specifically the automobile lines of business, were responsible for declines in underwriting results.
Tax expenses were down 26.8% and realized capital gains dropped 62.5%, as the industry’s net income slid 17.7% to $31.4 billion. Industry surplus declined 7.9%, to $969.0 billion from the end of 2021, as $36.4 billion of net income and other surplus gains were reduced by $15.9 billion of stockholder dividends and a $104.4 billion change in unrealized losses at National Indemnity Company, Columbia Insurance Company and State Farm Mutual.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=323609 .