Armchair analysts forecasting the impending collapse of property and accident insurance companies were proven incorrectly by recently released 2024 results of financial results. The total industry insurance results were profitable. The combined ratio between 2024 – loss and expenses divided by premium was 96.6%compared to the marginal unpaid 2023 result of 101.8%. Last year’s profitable result is impressive in light of the fact that 2024 was an active year for hurricanes in which Helene and Milton alone cause $ 95 billions in losses.
The total premium of the industry grew in 2024 by $ 1.05 trillion in direct written prize, up from $ 969 billion in 2013. The dashboard below shows the highlights of how the insurance industry appeared in 2024 compared to 2023.
| 2023 (numbers in $ billion) | 2024 (numbers in $ billion) | |
| Direct written prize | 969 | 1,046 |
| Handed over to reinsurance companies | 111 | 117 |
| Net written prize | 858 | 929 |
| Combined relationship | 101.8% | 96.6% |
| Expenditure conditions | 25.0% | 25.2% |
| Loss conditions (including LAE) | 75.4% | 71.0% |
| Loss conditions including lae) | 66.5% | 61.6% |
| Insurance gain | -20 | 27 |
| Bond yield | 3.7% | 4.1% |
(Source: Capitaliq Pro)
– –
In accordance with in recent years, the operating ratio of 2024, which measures the overall profitability of the industry, including investment revenue, was approx. 7%. The average net profit margin For the Fortune 500 companies, 13%, which shows that the insurance industry is modest, not wildly profitable. Data on profitability by business line has not been reported yet.
There were two further interesting developments revealed in the reported results. First, the proportion of the industry prize that comes from personal lines insurance (private passenger car and homeowners insurance), which has traditionally been approx. 47% of the total industry premium, now 51.4% of the total prize. This is because there were steep rate hikes in many states for both auto and homeowners’ insurance degree. Another surprise was in the industry’s income statement reporting $ 79 billion in realized capital gains in 2024. The huge number was almost exclusively driven by an insurance company, Berkshire Hathaway. In 2024 Sage of Omaha SOLD About $ 80 billion Apple stock. Berkshire Hathaway’s Apple Holdings generated one Nearly 800% return Since then, its holdings first revealed in the iPhone manufacturer. Before before For the massive sale, Apple represented 39.7% of Berkshire Hathaway’s stock portfolio.
Through 2024, there were statements that the insurance industry is on the knees and unable to deal with requirements that ballooned in size from climate change effects. One report became alarming title “End of Days? Is the insurance industry collapsing?” The actual figures are contrary to the disaster scenarios, where disasters cause prizes to skyrocket, forcing insurance companies out of the market. Insurance companies, supported by reinsurance companies, are in the process of covering losses from natural disasters. To be sure, insurance companies and reinsurance companies carefully maintain vital ”Disaster budgets“Which estimates how much they want to pay out in natural disaster allegations.
Where 2025?
Looking forward to the rest of 2025 is a factor that is likely to affect the insurance industry and is worth a weather eye, the effect of the other Trump administration. There have already been negative consequences as a result of job cuts at the National Oceanic and Atmospheric Administration (NOAA). Noaa’s satellite data and Reports On weather and climate patterns are used as input for climate models used by insurance companies to calculate, for example, disaster budgets. The data provided by NOAA “The truth about natural disasters” Study is from NOAA.
A further source of concern for insurers is the presence of applicant experimental lawyers in key management positions. For example, RFK Jr. advice At the plaintiff bar Giant Morgan & Morgan, who has previously been on the company’s payroll. Despite a presidential on March 22 memo Targeting of large law firms, Donald Trump’s own personal and business history suggests that he is no enemy of junk trial after being involved in estimated 4,000 litigationBoth as plaintiff and defendant. We can therefore see a torrent of litigation with some influence on liability insurance.
The insurance industry results in 2024 was strong. Investors maintain confidence in insurance companies’ management of their business. The S&P Composite 1500 Property & Casualy Insurance Index Has returned 7.52% this year, an impressive performance considering the blood that is running down Wall Street in recent weeks. But with chaos in Washington that is likely to affect insurance companies, you need to attach your seat belts because there may be turbulence in front.
The most important insurance news, in your inbox each working day.
Get the insurance industry’s trusted newsletter
