Losses from natural catastrophes challenged the US P&C industry's results in 2017. Underlying underwriting performance already deteriorated in 1H17 due to elevated losses from winter storms, severe thunderstorms and tornadoes. Landfall by three Category 4 storms along with large California wildfires in 4Q17 compounded the year's underwriting losses, which amounted to USD 22.2 billion, up from USD 3.3 billion in 2016. Meanwhile, a stronger investment result, particularly from realized capital gains, helped offset some of the cat impact on the bottom line. Notably though, a majority of the realized capital gain was due to a large one-off transaction by one company. In all, the industry's 2017 net income was positive, but declined 20.6% yoy to USD 33.4 billion.
Quarterly updates on the Life & Health and Property & Casualty insurance markets in the US and Canada, and special focus papers on associated themes.