The U.S. property and casualty insurance industry reported a $1.5 billion net underwriting loss for the first half of 2016 — ending a profit streak of more than 3 years, according to results released by the Insurance Services Office and the Property Casualty Insurers Association of America.
Net income after taxes dropped 30 percent to $21.7 billion in the first half of 2016, down from $31 billion a year earlier.
According to Steven Weisbart, senior vice president and chief economist at the Insurance Information Institute, the deteriorated results stem from incurred losses and loss adjustment expenses that spiked 8.1 percent in the second quarter, and by 7.2 percent for 2016′s first half. Direct insured property losses from catastrophes striking the United States totaled $13.5 billion for year's first half, up from $10.7 billion a year earlier and above the $11.6 billion first-half average for the past 10 years.
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