The Best’s Special Report, titled, “Property/Casualty Industry Performance Declines in Second Quarter of 2016 as Pressure Continues on Underwriting and Investment Results,” states that realized capital gains declined 43.3% from their level for the first two quarters of 2015, to
Pre-tax operating income fell 22.2% for the six-month period to
Despite the decline in net income, policyholders’ surplus grew modestly, up 1.3% year-to-date in 2016 and up 1.5% from its level at
Net premiums written growth remained positive for the industry, up 3.3% year-to-date, down from 4.0% through the first two quarters of 2015. Premium growth remained stronger than expected through this period, driven by continuing solid growth in personal lines. While commercial lines continue to show signs of pricing pressure, with premiums down in key property lines, other liability and commercial auto liability premiums are growing faster than the industry average rate.
The industry’s direct premiums written (DPW) grew 3.8% from its prior-year level through
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=253732.
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