US P/C Insurers Achieve Best Q1 Underwriting Results in 17 Years

The U.S. property/casualty (P/C) insurance sector has recorded its best first-quarter underwriting results in 17 years, posting a net combined ratio of 94. This remarkable achievement translates to an aggregate underwriting profit of $9.5 billion, a significant improvement from the $8.0 billion underwriting loss reported in the first quarter of 2023. The data, revealed on June 27, 2024, by Fitch Ratings, highlights the positive trend in the industry.

This positive development impacts U.S. property/casualty insurers, including major industry players across personal and commercial lines. The data reflects the first quarter of 2024.

This achievement signifies a robust recovery and improved financial health for the P/C insurance sector. Industry stakeholders, including insurers, brokers, and investors, will benefit from enhanced profitability, which supports better pricing strategies and customer services. The reduction in loss ratios, particularly in private passenger auto and homeowners insurance, underscores the effectiveness of recent strategic actions.

Fitch Ratings noted that the drop in the direct loss ratio for auto physical damage and lower winter storm losses were key drivers behind this improvement. Despite ongoing challenges in commercial auto and liability lines, the overall outlook remains positive, with analysts predicting a strong full-year underwriting profit.