U.S. Property & Casualty and Title Insurance Industries – 2021 Full Year Results
© 2022 National Association of Insurance Commissioners [1]
Property & Casualty Insurance Industry
PROPERTY & CASUALTY OVERVIEW
Near double-digit premium growth and a continuing trend of prior year reserve
releases were offset by increased catastrophe losses and worsening results in
personal auto. As a result, the property and casualty industry reported its first
underwriting loss since 2017, totaling $(39.0) million.
Continued strong performance in investment operations with a gain of $71.1
billion and miscellaneous income of nearly $2.0 billion offset the underwriting
loss and led to net income of $60.5 billion. Despite higher investment returns,
the investment yield declined to 2.60%, its lowest point in eleven years.
The combination of net income and unrealized capital gains of $86.8 billion
pushed policyholders’ surplus to a record high of $1.1 trillion at December 31,
2021.
U.S. Property and Casualty Insurance Industry Results
(in millions, except for percent)
YoY Chg 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Net Premiums Written 9.2% 719,815 658,913 642,984 621,786 561,952 537,926 524,006 506,657 486,462
Net Premiums Earned 7.4% 693,664 646,014 630,776 603,188 549,958 533,236 515,835 497,931 476,792
Net Losses Incurred 12.8% 432,474 383,308 378,582 366,258 353,954 323,195 296,749 284,934 263,576
Loss Expenses Incurred 1.1% 70,638 69,888 69,244 64,658 65,218 61,829 60,932 58,706 56,951
Underwriting Expenses 5.3% 189,487 179,964 173,055 168,228 151,672 148,692 145,753 139,846 136,586
Underwrting Gain (Loss) NM (39) 12,100 8,373 2,907 (22,459) (1,700) 11,453 14,658 20,127 (13,762)
Net Loss Ratio 2.4 pts 72.5% 70.2% 71.0% 71.4% 76.2% 72.2% 69.3% 69.0% 67.2%
Expense Ratio (1.0) pts 26.3% 27.3% 26.9% 27.1% 27.0% 27.6% 27.8% 27.6% 28.1%
Combined Ratio 0.9 pts 99.6% 98.7% 98.7% 99.1% 103.9% 100.5% 97.8% 97.3% 96.0%
1yr Rsrv Devlp/PY PHS 0.8 pts (0.0%) (0.8%) (0.8%) (1.6%) (1.4%) (0.7%) (1.2%) (1.4%) (2.7%) (2.2%)
Net Invmnt. Inc. Earned 2.6% 52,932 51,596 55,132 53,287 48,978 45,539 47,228 46,401 46,594
Net Realized Gains (Loss) 64.5% 18,200 11,064 11,260 10,885 19,833 8,747 10,285 12,006 18,823
Net Invmnt. Gain (Loss) 13.5% 71,132 62,660 66,392 64,172 68,812 54,286 57,513 58,407 65,417
Investment Yield (0.15) pts 2.60% 2.75% 3.19% 3.24% 3.08% 3.01% 3.18% 3.17% 3.34%
Total Other Income 240.0% 3,514 1,034 1,284 1,530 (4,687) 950 1,475 (2,908) (580)
1
(4.9%) 60,537 59,196 62,229 57,565 38,717 42,860 56,884 56,439 69,725
Return on Revenue (0.4) pts 7.9% 8.4% 8.9% 8.6% 6.3% 7.3% 9.9% 10.1% 12.9% 7.1%
December 31, YoY Chg 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
2
12.8% 1,077,866 955,136 891,214 779,921 786,016 734,026 705,948 706,740 686,135
Return on Surplus (0.5) pts 6.0% 6.4% 7.4% 7.4% 5.1% 6.0% 8.1% 8.1% 10.7% 6.1%
1. Excludes investment income from affiliates. 2. Adjusted to eliminate stacking
For the year ended
December 31,
Inside the Report
Page No.
Market Conditions ....................... 2
Premium ...................................... 3
Underwriting Operations ......... 5-9
Investment Operations .............. 10
Net Income ................................ 10
Cash Flow & Liquidity ...........10,11
Capital & Surplus ....................... 11
Reserves ...............................11,12
Reinsurance ..........................12,13
Inflation ................................13,14
Cyber.......................................... 14