OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. property/casualty (P/C) industry saw an $8.2 billion net underwriting loss in the first quarter of 2023, compared with a $3.4 billion gain in the same prior-year period, according to preliminary financial results. This financial review is detailed in a new Best’s Special Report, “First Look: Three-Month 2023 US Property/Casualty Financial Results,” and the data is derived from companies’ three-month 2023 interim statutory statements that were received as of May 30, 2023, representing an estimated 98% of the total P/C industry’s net premiums written.
According to the report, the combined ratio for the P/C industry deteriorated by 6.1 percentage points to 102.0 in the first quarter of 2023 compared with the same period of 2022. Catastrophe losses accounted for an estimated 6.9 points on the three-month 2023 combined ratio, three points higher than in the prior-year period.
The first-quarter 2023 underwriting loss, driven predominantly by personal lines losses, coupled with a 29.7% decline in net investment income, drove pre-tax operating income down 70.7% to $7.5 billion. With tax expense and realized capital gains down 39.5% and 53.2%, respectively, the industry’s net income slid 70.7% to $8.1 billion.
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