A.M. Best says COVID-19 related underwriting expenses and dividends will impact industry profitability.
Underwriting income for the U.S. property/casualty (P/C) industry fell by 5.5% in the first half of 2020, compared with first-half 2019, on increases in underwriting expenses and policyholder dividends, largely stemming from COVID-19-related factors. This AM Best financial review is detailed in a new Best’s Special Report, titled, First Look: 6-Month 2020 Property/Casualty Financial Results, and the data is derived from companies’ six-month 2020 interim statutory statements that were received as of Aug. 19, representing an estimated 97% of the total P/C industry’s net premiums written.
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