U.S. Insurance Industry Begins to See Surplus Recovery, Boosted by First Quarter Capital Gains and Signs of U.S. Property and Casualty Firms Inching Towards Stabilization
Verisk and APCIA report that the U.S. insurance industry is showing signs of recovery in the first half of 2024. Key highlights include:
1. Half-year 2024 gains estimated at $95 billion, with adjusted gains of $45 billion
2. Underwriting income improved from a $22.6 billion loss in 1H2023 to a $4.7 billion gain in 1H2024
3. Premiums written increased to $463 billion, up from $420 billion in 1H2023
4. Combined ratio improved to 97.6% from 104.2% in 1H2023
5. Policyholders' surplus increased to $1,070 billion from $1,014 billion at the end of 2023
However, challenges remain, including inflation impacts, natural catastrophes, and evolving risks like cyber threats. The industry's recovery is still ongoing, with surplus not yet reaching inflation-adjusted 2022 levels.
Verisk e APCIA riportano che l'industria assicurativa statunitense sta mostrando segni di recupero nella prima metà del 2024. I principali punti salienti includono:
1. Guadagni della prima metà del 2024 stimati a 95 miliardi di dollari, con guadagni rettificati di 45 miliardi di dollari
2. Il reddito da sottoscrizione è migliorato passando da una perdita di 22,6 miliardi di dollari nel 1H2023 a un guadagno di 4,7 miliardi di dollari nel 1H2024
3. I premi emessi sono aumentati a 463 miliardi di dollari, rispetto ai 420 miliardi di dollari nel 1H2023
4. Il rapporto combinato è migliorato al 97,6% rispetto al 104,2% nel 1H2023
5. L'avanzo dei contraenti è aumentato a 1.070 miliardi di dollari rispetto ai 1.014 miliardi di dollari a fine 2023
Tuttavia, rimangono sfide, tra cui gli impatti dell'inflazione, le catastrofi naturali e rischi in evoluzione come le minacce informatiche. Il recupero dell'industria è ancora in corso, con l'avanzo che non ha ancora raggiunto i livelli del 2022 adeguati all'inflazione.
Verisk y APCIA informan que la industria de seguros de EE.UU. está mostrando signos de recuperación en la primera mitad de 2024. Los aspectos destacados incluyen:
1. Ganancias de medio año de 2024 estimadas en 95 mil millones de dólares, con ganancias ajustadas de 45 mil millones de dólares
2. El ingreso por suscripción mejoró de una pérdida de 22.6 mil millones de dólares en 1H2023 a una ganancia de 4.7 mil millones de dólares en 1H2024
3. Las primas escritas aumentaron a 463 mil millones de dólares, en comparación con 420 mil millones de dólares en 1H2023
4. El ratio combinado mejoró al 97.6% desde el 104.2% en 1H2023
5. El exceso de los asegurados aumentó a 1,070 mil millones de dólares desde 1,014 mil millones de dólares a finales de 2023
Sin embargo, persisten desafíos, incluidos los impactos de la inflación, las catástrofes naturales y los riesgos en evolución como las amenazas cibernéticas. La recuperación de la industria aún está en curso, con el superávit que aún no ha alcanzado los niveles ajustados por inflación de 2022.
Verisk와 APCIA는 미국 보험 산업이 2024년 상반기에 회복의 조짐을 보이고 있다고 보고합니다. 주요 하이라이트는 다음과 같습니다:
1. 2024년 상반기 예상 수익은 950억 달러, 조정된 수익은 450억 달러
2. 보험금 수입은 2023년 1H에서 226억 달러의 손실에서 2024년 1H에 47억 달러의 이익으로 개선되었습니다
3. 발행된 보험료는 4200억 달러에서 4630억 달러로 증가했습니다 (1H2023 기준)
4. 손해율은 1H2023의 104.2%에서 97.6%로 개선되었습니다
5. 정책 보유자의 잉여금은 2023년 말 1,0140억 달러에서 1,0700억 달러로 증가했습니다
하지만 인플레이션 영향, 자연재해, 그리고 사이버 위협과 같은 진화하는 위험을 포함한 도전 과제가 여전히 존재합니다. 산업의 회복은 아직 진행 중이며, 잔여금은 인플레이션 조정된 2022년 수준에 도달하지 못했습니다.
Verisk et APCIA rapportent que l'industrie de l'assurance aux États-Unis montre des signes de reprise au cours du premier semestre 2024. Les points clés comprennent :
1. Gains estimés à 95 milliards de dollars pour le premier semestre 2024, avec des gains ajustés de 45 milliards de dollars
2. Le revenu souscrire a été amélioré, passant d'une perte de 22,6 milliards de dollars en 1H2023 à un gain de 4,7 milliards de dollars en 1H2024
3. Les primes écrites ont augmenté à 463 milliards de dollars, contre 420 milliards de dollars en 1H2023
4. Le ratio combiné s'est amélioré à 97,6 % contre 104,2 % en 1H2023
5. Le surplus des souscripteurs a augmenté à 1 070 milliards de dollars, contre 1 014 milliards de dollars à la fin de 2023
Cependant, des défis persistent, notamment les impacts de l'inflation, les catastrophes naturelles et les risques évolutifs tels que les menaces cybernétiques. La reprise de l'industrie est encore en cours, le surplus n'ayant pas encore atteint les niveaux ajustés à l'inflation de 2022.
Verisk und APCIA berichten, dass die US-Versicherungsbranche im ersten Halbjahr 2024 Anzeichen einer Erholung zeigt. Wichtige Höhepunkte sind:
1. Die Gewinne im ersten Halbjahr 2024 werden auf 95 Milliarden Dollar geschätzt, mit angepassten Gewinnen von 45 Milliarden Dollar
2. Das Underwriting-Einkommen verbesserte sich von einem Verlust von 22,6 Milliarden Dollar im 1H2023 auf einen Gewinn von 4,7 Milliarden Dollar im 1H2024
3. Die geschriebenen Prämien stiegen auf 463 Milliarden Dollar, gegenüber 420 Milliarden Dollar im 1H2023
4. Der combined ratio verbesserte sich auf 97,6% von 104,2% im 1H2023
5. Das Überschuss der Policeninhaber stieg auf 1.070 Milliarden Dollar von 1.014 Milliarden Dollar Ende 2023
Es gibt jedoch weiterhin Herausforderungen, einschließlich der Auswirkungen der Inflation, Naturkatastrophen und sich entwickelnde Risiken wie Cyberbedrohungen. Die Erholung der Branche ist noch im Gange, wobei der Überschuss die inflationsbereinigten Werte von 2022 noch nicht erreicht hat.
- Underwriting income improved from a $22.6 billion loss in 1H2023 to a $4.7 billion gain in 1H2024
- Premiums written increased by 10.2% to $463 billion in 1H2024
- Combined ratio improved to 97.6% from 104.2% in 1H2023
- Policyholders' surplus increased to $1,070 billion from $1,014 billion at the end of 2023
- Rate of return on average policyholders' surplus increased to 9.1% in 1H2024 from 3.6% at the end of 2023
- Current surplus has not recovered to inflation-adjusted levels seen in early 2022
- Personal lines are still struggling to keep up with rising losses
- Increased non-traditional catastrophe activity, characterized by numerous smaller convective storms
- Ongoing challenges from extreme weather patterns and new exposures like cyber risks
Insights
The U.S. insurance industry's financial health is showing signs of improvement, with a $95 billion gain in the first half of 2024. This represents a significant turnaround from the $22.6 billion loss in the same period of 2023. The combined ratio improved to
The 11% growth in earned premiums to
The insurance industry's recovery is a positive sign, but it's not uniform across all sectors. Commercial lines are stabilizing and profitable, while personal lines continue to struggle. The improvement in underwriting results (
The increase in non-traditional catastrophe activity, characterized by numerous smaller convective storms, is a concerning trend. This shift from larger, individual catastrophe events to more frequent, smaller storms could impact insurers' risk models and pricing strategies. As we enter the peak of hurricane season and with ongoing wildfire risks, insurers must remain cautious. The industry's ability to maintain profitability will depend on accurate risk assessment, appropriate pricing and effective use of analytics to understand and mitigate evolving risks.
The insurance industry's recovery is occurring against a backdrop of economic uncertainty and changing risk landscapes. The 11% growth in premiums suggests that insurers are successfully implementing rate increases to address rising costs. However, this could potentially lead to affordability issues for consumers, especially in personal lines where losses continue to be a challenge.
The industry's focus on analytics and actionable insights is important for future stability. As risks evolve, particularly in areas like cyber insurance and climate-related events, insurers that can accurately model and price these risks will have a competitive advantage. The trend towards smaller, more frequent catastrophic events could reshape the reinsurance market and impact how insurers manage their risk portfolios. Investors should monitor how individual companies adapt to these changing dynamics, as it will likely influence their long-term profitability and market position.
Verisk & APCIA report that capital gains helped fuel surplus recovery and offset industry losses, amidst inflation impacts and natural catastrophe events
JERSEY CITY, N.J., Aug. 28, 2024 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, and The American Property Casualty Insurance Association (APCIA), the primary national trade association for home, auto and business insurers, today reported that half-year 2024 gains for the insurance industry are estimated to be
“While there are some positive signals in the 1H2024 results, insurers are still recovering from significant underwriting losses in recent years,” said Robert Gordon, senior vice president of policy, research, and international at APCIA. “Insurers’ underwriting income swung from a
- Premiums written: Insurers wrote
$463 billion in premiums during the first half of this year, compared to$420 billion during the same period in 2023. Similarly, earned premiums grew 11 percent to$436 billion for the first half of 2024. - Underwriting gain: The estimated U.S. insurance industry net underwriting gain of
$3.7 billion is an improvement over the$23.4 billion loss reported at this point in 2023, and$5.6 billion loss in 2022. - Incurred losses and loss adjustment expenses increased by 2.2 percent, while earned premiums grew by 11 percent in the first half of 2024. The combined ratio, a crucial measure of profitability for insurers, was 97.6 percent during the first half of 2024 versus 104.2 percent for the same time period in 2023.
- Surplus: In the first half of 2024, the policyholders’ surplus increased slightly from
$1,014 billion at the end of 2023 to$1,070 billion ; however, insurers’ rate of return on average policyholders’ surplus, a crucial component of overall profitability, increased to 9.1 percent in the first half of 2024, up from 3.6 percent at the end of 2023.
“After years of consistent losses, premium growth is helping the overall industry move towards stabilization, with positive first-half underwriting gains for the first time since 2021,” said Saurabh Khemka, co-president of underwriting solutions at Verisk. “To maintain this momentum, it is critical we continue to address the evolving risks that challenge society today, especially the factors that continue to drive increased personal auto and homeowner rates.”
The first half of 2024 saw an increase in non-traditional catastrophe activity, characterized by numerous smaller convective storms.
Khemka added: “This trend, which began in 2023, contrasts from the larger, individual catastrophe events we have historically experienced later in the year. Looking ahead, insurers must prioritize actionable insights and analytics to understand and help fuel a healthy insurance industry, which is pivotal to protection of policyholders.”
The preliminary 1H2024 property/casualty insurance industry results shown in the table below represent consolidated estimates derived from annual statements submitted by insurers to insurance regulators. These results are based on approximately 91 percent of all business underwritten by private U.S. property/casualty insurers.
Note: The results above are based on annual statements filed with insurance regulators by private property/casualty insurers domiciled in the United States, including reinsurers, excess and surplus insurers, and domestic insurers owned by foreign parents, and excluding state funds for workers' compensation and other residual market insurers, the National Flood Insurance Program, and foreign insurers. The figures are consolidated estimates based on reports accounting for about 91 percent of all business written by U.S. property/casualty insurers. All figures are net of reinsurance unless otherwise noted and occasionally may not balance due to rounding.
###
About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
About APCIA
The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions-protecting families, communities, and businesses in the U.S. and across the globe.
FAQ
What was Verisk's (VRSK) reported underwriting gain for the U.S. insurance industry in the first half of 2024?
How much did premiums written increase for U.S. insurers in the first half of 2024 according to Verisk (VRSK)?
What was the combined ratio for U.S. insurers in the first half of 2024 as reported by Verisk (VRSK)?
How did the policyholders' surplus change for U.S. insurers in the first half of 2024 according to Verisk (VRSK)?
