Armchair analyst predicts upcoming Collapse Recent publications of property and casualty insurance companies proved to be wrong 2024 Financial Performance Results. The underwriting performance of the entire industry is profitable. The merger ratio for 2024 – loss and expense divided by premiums is 96.6%, while the slightly profitable result for 2023 is 101.8%. Given that 2024 is an active year for the hurricane, Helene and Milton only resulted in profitability last year, which is impressive $95 Billion losses.
The industry’s total premium grew in 2024, with a direct written premium of $1.05 trillion, up from $969 billion in 2013. The dashboard below shows the focus of the insurance industry’s performance in 2024 in 2024.
| 2023 (billion dollar quantity) | 2024 (billion dollar amount) | |
| Direct written insurance premium | 969 | 1,046 |
| Ceded to reinsurer | 111 | 117 |
| Net written premium | 858 | 929 |
| Combination ratio | 101.8% | 96.6% |
| Cost ratio | 25.0% | 25.2% |
| Loss rate (including LAE) | 75.4% | 71.0% |
| Loss rate does not include LAE) | 66.5% | 61.6% |
| Underwriting income | -20 | 27 |
| Bond output | 3.7% | 4.1% |
(Source: Capitaliq Pro)
–
In line with recent years, the 2024 operating ratio measuring the industry’s overall profitability, including investment income, is about 7%. Average net profit profit For Fortune 500 companies, 13% indicate that the insurance industry is modest, not profitable. No data on dividing profitability has been reported.
Two other interesting developments are revealed in the results of the report. First, traditionally, the industry’s premiums come from personal line insurance (private passenger car and homeowner insurance), accounting for about 47% of the industry’s total premium and now accounts for 51.4% of the total premium. This is because the insurance rate of automobile and homeowners in many states exceeds that of commercial insurance products has increased. Another surprise was the industry’s profit and loss statement, which reported capital gains realized in 2024 by $79 billion. This figure is almost entirely driven by Berkshire Hathaway, an insurance company. The saints of Omaha in 2024 Sell About $80 billion in Apple stock. Berkshire Hathaway’s Apple Holdings is born Nearly 800% return Since its first disclosure of its stake in the iPhone maker. In advance Apple accounts for 39.7% of Berkshire Hathaway’s stock portfolio.
Throughout 2024, there were statements that the insurance industry was in a knee-jerk manner and the surge in claims that could not cope with the impact of climate change. One such Report What is shocking is “How many days are over? Is the insurance industry about to collapse?” The actual numbers contradict the situation of the disaster, which caused a surge in premiums, forcing insurance companies to leave the market. Insurers backed by reinsurers are covering losses from natural disasters. To be sure, insurance companies and reinsurers are cautiously maintaining important “Disaster budget”, which estimates how much they will pay in natural disasters.
2025?
Looking ahead to the rest of 2025, this could be a factor that affects the insurance industry and deserves to keep the weather eye on, which is the impact of the second Trump administration. The layoffs of the National Oceanic and Atmospheric Administration (NOAA) have already had negative consequences. NOAA’s satellite data and Report For example, it is used as input to climate models used by insurance companies to calculate disaster budgets on weather and climate patterns. The data provided by NOAA is so valuable that five of the 18 climate research experts on R Street “The truth about natural disasters” Research comes from NOAA.
Another source of concern for insurance companies is plaintiff trial attorneys in key administrative positions. For example, rfk Jr. is Legal Counsel In plaintiffs bar giants Morgan & Morgan, Morgan, have previously been on the company’s payroll. Despite the President on March 22 memorandum Donald Trump’s personal and business targets large law firms history It shows that he is not the enemy of litigation, it is estimated that 4,000 lawsuitsboth plaintiff and defendant. Therefore, we may see a series of lawsuits that have had a certain impact on liability insurance.
The insurance industry will have strong results in 2024. Investors maintain confidence in insurance companies managing their business. this S&P Compound 1500 Property and Casualty Insurance Index This year returned 7.52%, an impressive performance given Wall Street wanderings in recent weeks. But with the chaos in Washington, it could affect insurance companies, so the seat belts are secured because there could be turmoil.
The most important insurance news in your inbox every business day.
Get trustworthy newsletters in the insurance industry
