Financial News

Best’s Special Report: U.S. Property/Casualty Industry Posts $32 Billion Underwriting Loss in First Nine Months of 2023

The U.S. property/casualty (P/C) industry recorded a $32.2 billion net underwriting loss in the first nine months of 2023, $7.6 billion worse than the underwriting loss posted in the same prior-year period, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Nine-Month 2023 US Property/Casualty Financial Results,” and the data is derived from companies whose nine-month 2023 interim period statutory statements were received as of Dec. 4, 2023, representing an estimated 99% of total industry net premiums written and 98% of policyholder surplus.

According to the report, losses in the personal lines segment was main driver of the P/C industry’s combined ratio of 103.4 for the nine-month period, a 0.7-percentage-point deterioration from the same period in 2022. Catastrophe losses accounted for an estimated 9.8 percentage points on the nine-month 2023 combined ratio, up from an estimated 7.3 points in the first nine months of 2022.

The P/C industry saw net earned premium growth of 9.7% and a 2.2% decline in policyholder dividends in the nine-month period; however, these were countered by a 11.9% increase in incurred losses and loss adjustment expenses (LAE) to $476.4 billion and a rise in other underwriting expenses. With earned net investment income virtually equivalent to the prior-year period at $51.4 billion, the underwriting loss drove pre-tax operating income down 28.4%, to $19.9 billion. A $50 billion change in net realized capital gains at National Indemnity Company resulted in net income for the industry more than doubling to $65.7 billion.

To access the full copy of this special report, please visit

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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