US property and casualty (P&C) insurers’ net income grew 31% to $US18.2 billion ($24.55 billion) in the first quarter of this year, according to a new report.

Strong capital levels and underwriting results and mild catastrophic losses lifted the result, the Property Casualty Insurers Association of America (PCIAA) and analyst ISO say.

Pre-tax operating income grew 11.5% to $US15.6 billion ($21.04 billion).

The combined operating ratio was 95.7%, compared with 97.1% in the corresponding period last year.

Net investment returns increased 4.6% to $US11.7 billion ($15.78 billion).

Realised capital gains and net investment gains were the highest since ISO started keeping quarterly records in 1986, the report says. Net investment gains – combining realised capital gains and net investment income – grew 16% to $US16.4 billion ($22.11 billion).

Policyholders’ surplus – funds available to cover new claims – grew to 10.8% from 8.4%.

Net written premium was up 3.7% to $US125.9 billion ($169.81 billion) in the quarter.

Net gains on underwriting increased 70% to $US4.1 billion ($5.53 billion), and net cat losses were up 6.2% to $US3.4 billion ($4.58 billion).

PCIAA Senior VP Policy Development and Research Robert Gordon says US P&C insurers enjoyed a strong first quarter.

“These results, partially attributable to mild catastrophic losses, have insurers well positioned to continue to provide the necessary financial security for their policyholders as we move further into yet another uncertain hurricane season.”