US property and casualty insurers recorded a $US20 billion ($26.4 billion) net underwriting loss in the nine months to September as hurricanes and other catastrophes took a toll, according to an AM Best special report.

And the payouts will continue, with the industry facing another huge bill from last month’s wildfires in California.

“Catastrophes have taken centre stage as record insured losses from hurricane damage have become the main driver of year-to-date results, overshadowing underlying industry fundamentals,” the report obtained by insuranceNEWS.com.au says.

“The industry will not see a reprieve during the fourth quarter… losses during the fourth quarter from the California wildfires will likely result in… a record year for insured catastrophe losses.”

Catastrophe losses accounted for 9.8 points of the combined operating ratio, which deteriorated to 104% from 99.7% last year.

The industry’s catastrophe losses increased 89.1% to $US38.4 billion ($50.7 billion) and net income fell 25.5% to $US22.9 billion ($30.3 billion).

Incurred losses and loss adjustment expenses grew 11.3% in the January-September period, which negated a 4% rise in net earned premium to $US393.7 million ($517.1 million).