S&P: P/C Sector Poised for Strong Year

A new report from S&P Global Inc. forecasts that growth in direct premiums written in the property and casualty (P&C) sector. The report expects the overall P&C sector to post a combined ratio of 99.7 percent for the year, marking the fourth consecutive year of underwriting profit for the industry.

“The U.S. P&C industry has not produced combined ratios of less than 100 percent for four consecutive calendar years in the 25 years for which S&P Global Market Intelligence has collected statutory data,” the report notes. “Our outlook assumes history will be made in 2021,” S&P said.

The combined ratios for 2020, 2019, and 2018, were 98.7 percent, 98.9 percent, and 99.2 percent, respectively. In 2017, the P&C sector posted an aggregate combined ratio of 103.8 percent. The report is based on an analysis of disclosures at the line-of-business level on annual statutory financial statements filed with the National Association of Insurance Commissioners by more than 2,600 U.S.-domiciled P&C insurers.