US property and casualty insurers made a combined net underwriting profit of $US4.1 billion ($6.4 billion) in the first nine months of this year, AM Best says.

The ratings agency says the results marks a “significant” fightback for the industry after a $US32.1 billion ($49.8 billion) loss in the previous corresponding period.

“The continued turnaround in the personal lines segment was primarily responsible for the improvement in underwriting results.” AM Best says.

Net earned premium growth of 9.5% to $US652.1 billion ($1.01 trillion) offset a 1.3% increase in incurred losses and loss adjustment expenses and a 9.2% rise in other underwriting expenses.

The industry’s combined operating ratio improved 5.8 points to 97.9%. Catastrophe losses accounted for 8.8 points of the ratio, down from 10 from a year earlier.

Pre-tax operating income surged 261.7% to $US65.9 billion ($102.2 billion), lifted by the underwriting gain and a 22.1% rise in earned net investment income to $US60.5 billion ($93.8 billion).