The U.S. property and casualty insurance industry has turned things around after losses recorded in the first quarter of 2023, according to an AM Best analysis of property and casualty insurers’ first-quarter financial results that became available May 29, 2024.

According to AM Best’s “First Look: 2024 Three-Month U.S. Property/Casualty Financial Results” report, the industry enjoyed a net underwriting gain of $9.3 billion in the first quarter of 2024, a stark contrast to an $8.5 billion loss. In the first quarter of 2024. The same period of the previous year.

The companies whose data were used in the analysis cover approximately 98% of the total net insurance premiums recorded in the casualty and insurance industry.

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The report highlights a significant improvement in the sector’s combined ratio, which fell to 94.2 in the first quarter of this year from 102.5 in the first quarter of 2023. Catastrophe losses contributed an estimated 5.1 points to the combined ratio in the three-month period of 2024, down From 7.6 points the previous year when the industry suffered record severe losses in convective storms.

The underwriting gain, coupled with a 33.3% increase in net investment income earned, pushed pre-tax operating income 332.9% to $30 billion. Additionally, according to AM Best, the $10.2 billion shift in net realized capital gains at National Indemnity more than quadrupled industry net income to $39.9 billion.

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AM Best also reported: “Industry surplus increased from year-end 2023 to $1.1 trillion, with a total of $44.2 billion in net income, change in unrealized gains, and contributed capital reduced by $2.3 billion in other surplus losses and $5.1 billion From shareholders’ profits.

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