US property and casualty insurers’ profitability increased 1.4% while premium growth and investment income has remained stable, according to half-year statistics.

The figures from ISO, a Verisk Analytics business, and the Property Casualty Insurers Association of America (PCI) show net income after tax grew to $US31 billion ($42.97 billion) from $US26 billion ($36.04 billion) in the corresponding period last year. 

The industry combined operating ratio improved to 97.6% from 98.9%, while net written premium growth was unchanged at 4.1%.

Realised capital gains increased to $US8.2 billion ($11.3 billion) from $US7.2 billion ($9.98 billion), resulting in $US31.6 billion ($43.8 billion) in net investment gains.

PCI Senior VP Robert Gordon says the improved results reflect a relatively quiet half for natural disasters.

“While Old Man Winter did his best to disrupt things in the northeast, during the first half… insurers overall incurred lower domestic catastrophe losses than during the first half of last year due to a relatively quiet tornado season and the slow start to hurricane season.”

ISO President Beth Fitzgerald warns against complacency, noting US catastrophe losses in the first half were only slightly below the 10-year average.

“As the devastation caused by meteorological conditions associated with Hurricane Joaquin highlights, it’s crucial for insurers to remain disciplined in their underwriting and look at analytics to be ready not only for weather disasters but also for other major challenges the future may hold,” Ms Fitzgerald said.