Insurer Financial Data for the Year 2024, as calculated by the Best's Capital Adequacy Ratio Model for Property and Casualty sector in the U.S., is now accessible courtesy of AM Best.
In a recent press release, AM Best, a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry, has announced the release of the 2024 annual financial data for insurers that have completed their filings for Best's Capital Adequacy Ratio (BCAR) Model - Property/Casualty (P/C), US.
The data reveals several key insights into the sector's performance and capitalization. Notably, the P/C sector recorded its first underwriting profit since 2020, with net underwriting gains reaching $22.9 billion in 2024, indicating a return to profitability for the industry.
Capital adequacy measured by BCAR remains strong for leading insurers. For instance, UnitedHealthcare’s BCAR indicates a very strong risk-adjusted capitalization level, supported by retained earnings and conservative investment strategies focused mainly on investment-grade fixed income securities and cash. Another insurer, Motors Insurance, maintained a BCAR capitalization at the strongest level, supporting a consistent and strong operating performance over the intermediate term.
Financial metrics like combined ratios are also noteworthy. Convex Group Limited generated an 87% consolidated combined ratio in 2024, marking the third consecutive year of sub-100% combined ratio results, reflecting underwriting profitability.
The industry experienced underwriting discipline and pricing momentum which contributed to improved results across many commercial lines, despite some segments like other liability (occurrence) facing challenges due to rising severity in claims.
In summary, the data from AM Best filings indicate that the US P/C insurance industry in 2024 has shown improved underwriting profitability and maintained strong capital adequacy levels as measured by BCAR, with leading companies demonstrating prudent capital management and favorable financial performance metrics.
For more information about the BCAR Model, AM Best's services, or its operations, please contact Maryrose Paar, Director, at 1 908 882 2218 or [email protected]. Alternatively, Business Development at (908) 439-2200, option 5, or [email protected] can be contacted.
The press release is copyrighted by A.M. Best Company, Inc. and/or its affiliates. For general inquiries, please contact Business Development at (908) 439-2200, option 5, or [email protected].
AM Best is headquartered in the United States and does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. The BCAR Model captures the combined impact of financial risks associated with adverse market conditions. The press release is titled "AM Best Releases 2024 Annual Financial Data for Insurers Completing BCAR Model Filings - P/C, US".
The strong capital adequacy levels, as indicated by BCAR, among leading insurers like UnitedHealthcare and Motors Insurance, can be attributed to their prudent investment strategies and robust risk-adjusted capitalization. Meanwhile, cloud services may be beneficial for businesses in the insurance industry, as they could help in analyzing and managing complex financial data, such as the annual financial data provided by AM Best.
