Pretax operating income was up nearly 8.1% for the first quarter of 2013 compared to the same period a year ago.

Net premiums earned (NPE) increased by $2.4 billion, or 4.1 percent, to $60.7 billion for the quarter, while net loss and loss-adjustment expenses incurred increased by nearly $1.1 billion, or 2.6 percent, to $41.7 billion.

A.M. Best says the increase in NPE was attributed primarily to rate increases,mmainly on the homeowners line of business, and to a lesser extent on the private passenger auto liability line. “Rates

for homeowners multiperil coverages have been increasing to help offset a higher rate of incurred claims countrywide due to more frequent and severe weather-related events over the past few years. A.M. Best notes.

For commercial lines, underwriting income was $1.1 billion for 2013's first quarter compared to an underwriting loss of $0.2 billion the year before. Net income was $12.8 billion, up from $7.4 billion in 2012's first quarter.

A.M. Best says several commercial lines showed strong increases in direct premiums written (DPW), notably workers' compensation (11.1 percent),general and products liability (8.3 percent), commercial multiperil (7.8 percent) and commercial auto liability (7.6 percent).

The ratings agency says that among the major lines of insurance, only two – medical professional liability and accident and health – showed declines in DPW for Q1 2013.

The commercial lines segment showed a 1.2 percent increase in NPW in the quarter, to approximately $47.2 billion. “The sustained growth in premium reflects ongoing recovery in the exposure base given an improving economic environment, combined with ongoing rate firming as market conditions improve,” says A.M. Best. As in recent quarters, growth in premium volume within the commercial lines segment has been driven primarily by the workers' compensation line, which has reported both rate increases and an expanding payroll (exposure) base as economic conditions improve after the recession.”