When it comes to underwriting, Swiss Re predicts the industry combined ratio will improve to 100% in 2023 and 98.5% in 2024 – compared to 102.4% in 2022. (Credit: apana_Studio/Adobe Stock)
Swiss Re expects the return on equity (ROE) of the U.S. P&C industry to be significantly better in 2023 and 2024, compared to 2022, according to their latest U.S. Property & Casualty Outlook.
An active year for NAT CAT events – including Hurricane Ian, which caused more than $100 billion in damage in Florida – and high inflation led ROE to fall in 2022. However, underwriters are now taking inflation into account, and the Swiss Re report predicts a narrowing of the gap between commercial and personal lines loss ratios as well as premium growth of 7.5% in 2023 and 5.5%. This forecast has ROE improving to 8% in 2023 and 9.5% in 2024 on account of higher premium rates and investment yields.
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Brittney Meredith-Miller
Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].
