The US property & casualty (P&C) industry recorded a $US24.5 billion ($38.08 billion) net underwriting loss in the first half – close to matching the full-year loss of $US26.5 billion ($41.19 billion) recorded in 2022, AM Best says. 

The result compares with a $US6.6 billion ($10.25 billion) loss a year earlier. 

AM Best says the deterioration in the industry’s combined ratio to 104.5% "underscores the ongoing headwinds such as rising loss costs, above average catastrophe activity, and adverse trends in personal auto.” 

The personal lines segment, specifically the homeowners’ line, was primarily responsible for the decline in underwriting results, and AM Best estimates catastrophe losses accounted for 9.6 points of the combined ratio.  

“Secondary perils continued to drive poor loss experience,” analyst Christopher Graham said. 

Net income dropped 72% to $US8.8 billion.  

See the report here.