Most carriers are reporting positive 2023 year end results but rate increases continue

[NY independent]

Has anyone seen the year end numbers for stock carriers? Travelers, CNA, Allstate, Progressive, Cincinnati, Chubb, AIG.....?
Some are reporting billions in net income yet they are still saying they are not rate adequate on personal lines yet. Some are still laying off employees and cutting agent's compensation packages, terminating, etc. Clients are starting to call in and aren't happy. It's tough to defend carrier profitability when the results indicate otherwise. I know carriers base rate increases on individual state performance, but this is big time corporate greed.

 

[adjusterjack]

Some are reporting billions in net income

Have you actually seen any published financial reports for 2023?

If not, where are you getting your information from?

Post a link to it.

 

[NY independent]

Just look at last week's "insurance journal". If anyone wants to analyze things, check the financial news links on carrier websites. Just a few are above.

 

[adjusterjack]

OK, I'll do the work.

Travelers - profitable 2023, 2022, 2021

Travelers Reports Excellent Fourth Quarter 2023 Results

Record Quarterly Net Income per Diluted Share of $6.99 and Return on Equity of 29.0% Record Quarterly Core Income per Diluted Share of $7.01 and Core Return on Equity of 24.0% Full Year Net Income of $2.991 billion and Return on Equity of 13.6% Full Year Core Income of $3.072 billion and Core...

investor.travelers.com

Travelers 2021 Annual Report

s26.q4cdn.com

CNA - profitable 2023, 2022

CNA Announces Fourth Quarter 2023 Results | CNA Insurance

Read the press release here. A conference call for investors and the professional investment community will be held at 8:00 a.m. (CT) today.

www.cna.com

Allstate - not profitable 2023, 2022

Allstate Reports Fourth Quarter 2023 Results

NORTHBROOK, Ill., February 07, 2024--The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter of 2023.

finance.yahoo.com

Progressive - profitable 2023, 2022, 2021, 2020, 2019

Progressive Shareholders’ Report

The Progressive Group of Insurance Companies, in business since 1937, is one of the country’s largest auto insurance groups.

s24.q4cdn.com

Anybody interested in the others can look them up.

 

[marindependent]

Some are reporting billions in net income yet they are still saying they are not rate adequate on personal lines yet.

Yah but insurance in the US is a game of a State by State business. Most consumers see National numbers and assume things are the same in each state and they are often not.

 

[Gulliver]

Last quarter was improved, however, the year was terrible for most. Still too early to say the light is at the end of the tunnel.

 

[Paul H]

Saw something floating around on-line about Reinsurance renewals as of 1/1/24.

Rate increases still but in single-digits. Some hope that rate increases may slow and the market may regain a bit of sanity in '24....

If I can find it I'll post it.

 

[marindependent]

Ill add an article about State Farm...one of the largest insurers in the US:
State Farm Facing worst homeowners Loss Ratio in 2 Decades:

State Farm Mutual Automobile Insurance Co. is on pace for its worst homeowners direct incurred loss ratio in over two decades even as its private auto ratio shows signs of improvement

In 2023, the world's largest property and casualty insurer's homeowners loss ratio thus far stands at 84% — its worst nine-month figure since 2008, when it amounted to 85.9%. The nine-month loss ratio is significantly worse than the 60.2% ratio for 2022.

Should the ratio stay at that elevated level for the remainder of the year, it would mark the fourth time that the largest US homeowners insurer's direct incurred loss ratio surpassed 80% since 1996. The previous years were in 2001, 2008 and 2017 with a direct loss ratio of 87.5%, 81.2% and 80.9%, respectively.

By contrast, the insurer's private auto ratio has shown improvement through the first nine months of 2023. While its loss ratio still remains high when compared to the previous 27 years, its 85.2% loss ratio through Sept. 30 was a 9.5-percentage-point improvement from the prior full year. State Farm's private auto loss ratio through the first nine months of 2022 was 91.7%.

At the root of the significant rise in State Farm's homeowners loss ratio was a large number of severe storms, which substantially increased the amount of incurred losses — the amount paid in claims and set aside for reserves — so far in 2023. The incurred claim amount of nearly $16 billion through the first three quarters was a 47.3% increase from the prior nine-month period in 2022 and almost $2 billion more than the full year....

 

[Allen Trent]

Ill add an article about State Farm...one of the largest insurers in the US:
State Farm Facing worst homeowners Loss Ratio in 2 Decades:

State Farm Mutual Automobile Insurance Co. is on pace for its worst homeowners direct incurred loss ratio in over two decades even as its private auto ratio shows signs of improvement

In 2023, the world's largest property and casualty insurer's homeowners loss ratio thus far stands at 84% — its worst nine-month figure since 2008, when it amounted to 85.9%. The nine-month loss ratio is significantly worse than the 60.2% ratio for 2022.

Should the ratio stay at that elevated level for the remainder of the year, it would mark the fourth time that the largest US homeowners insurer's direct incurred loss ratio surpassed 80% since 1996. The previous years were in 2001, 2008 and 2017 with a direct loss ratio of 87.5%, 81.2% and 80.9%, respectively.

By contrast, the insurer's private auto ratio has shown improvement through the first nine months of 2023. While its loss ratio still remains high when compared to the previous 27 years, its 85.2% loss ratio through Sept. 30 was a 9.5-percentage-point improvement from the prior full year. State Farm's private auto loss ratio through the first nine months of 2022 was 91.7%.

At the root of the significant rise in State Farm's homeowners loss ratio was a large number of severe storms, which substantially increased the amount of incurred losses — the amount paid in claims and set aside for reserves — so far in 2023. The incurred claim amount of nearly $16 billion through the first three quarters was a 47.3% increase from the prior nine-month period in 2022 and almost $2 billion more than the full year....

just a paper loss, right? Tax write off loophole for big business as they gouge the American & non-American residents of the United States

 

[marindependent]

And here is more data to back up statements that Home Insurers are/were getting hit hard in 2023:
From the IJ: Fitch: Homeowners Insurers’ Results to Improve In 2024

"The Allstate Corporation, the second-largest U.S. homeowners writer, reported a combined ratio of 106.8 in 2023. Allstate’s combined ratio was listed at 93.6 in 2022."

"The Hanover Insurance Group reported a 131.6 homeowners 2023 combined ratio, while the Progressive Corporation dropped below 100 combined ratio in 2023, due, in part, to fewer Florida insured losses."
"The property and casualty insurance industry is anticipated to post deterioration in homeowners’ statutory underwriting performance for the year, with a segment combined ratio projected at 109 in 2023 versus 104.4 in 2022, Fitch said."

"Full-year 2023 statutory homeowners combined ratios are not yet available, but significant increases in direct loss ratios for the first nine months of the year indicate “significant deterioration in homeowners results for the largest mutual insurers in the segment, including State Farm, USAA, Liberty Mutual and American Family,” Fitch reported. "