While navigating unprecedented challenges from catastrophic storms to economic pressures, the U.S. property and casualty insurance industry demonstrated remarkable resilience in 2022, with direct premiums soaring past $808 billion, a sign of both its critical role and dynamic evolution in a risk-filled world.
Key Takeaways
- In 2022, U.S. property/casualty insurance industry direct premiums written reached $808.4 billion, a 7.2% increase from $753.8 billion in 2021.
- Global property/casualty insurance premiums grew by 2.1% in real terms in 2022 to $2.8 trillion, driven by exposure growth and rate increases.
- The U.S. P/C industry's net premiums earned in 2022 totaled $697.2 billion, up 6.8% from the previous year.
- In 2022, direct premiums written for private passenger auto insurance totaled $289.5 billion, up 12.4% YoY.
- Homeowners insurance direct premiums written in the U.S. hit $124.2 billion in 2022, a 14.1% increase.
- Commercial multiperil premiums written grew to $143.8 billion in 2022, up 8.6%.
- U.S. P/C incurred losses and loss adjustment expenses were $512.3 billion in 2022, up 9.8% from 2021.
- Catastrophe claims paid by P/C insurers in 2022 exceeded $103 billion, highest since 2017.
- Auto physical damage incurred losses reached $92.4 billion in 2022, up 14.2%.
- The U.S. P/C industry's average combined ratio was 105.2% in 2022, indicating underwriting losses.
- Net underwriting losses for P/C insurers totaled $37.4 billion in 2022.
- Policyholder surplus growth rate was 4.1% in 2022, reaching $1.15 trillion.
- State Farm held 9.3% market share of U.S. P/C direct premiums written in 2022 with $76.6 billion.
- Berkshire Hathaway group ranked second with 7.8% share, writing $63.0 billion in 2022 DPW.
- Progressive was third at 6.5% market share, $52.5 billion DPW in 2022.
The U.S. property and casualty insurance industry grew significantly in 2022 despite substantial underwriting losses from high claims.
Company and Market Share Statistics
- State Farm held 9.3% market share of U.S. P/C direct premiums written in 2022 with $76.6 billion.
- Berkshire Hathaway group ranked second with 7.8% share, writing $63.0 billion in 2022 DPW.
- Progressive was third at 6.5% market share, $52.5 billion DPW in 2022.
- Allstate captured 4.2% share with $34.1 billion in 2022 P/C premiums.
- USAA group had 3.9% share, $31.4 billion DPW in 2022.
- Liberty Mutual ranked sixth with 3.7% share at $29.8 billion in 2022.
- Travelers group wrote $25.6 billion, 3.2% share in 2022 P/C market.
- Nationwide held 2.8% share with $22.7 billion DPW 2022.
- Farmers Insurance Group had 2.6% share, $21.0 billion in 2022.
- Auto-Owners group captured 1.9% with $15.4 billion DPW 2022.
- Personal lines accounted for 54% of total P/C premiums in 2022.
- Commercial lines made up 46% of the P/C market premiums in 2022.
- Top 10 writers controlled 45.2% of U.S. P/C premiums in 2022.
- Stock insurers wrote 78% of P/C premiums in 2022, mutuals 22%.
- California represented 11.4% of national P/C premiums in 2022.
- Florida's share was 7.8% of U.S. P/C DPW in 2022.
- Texas held 6.5% market share in P/C premiums 2022.
- New York accounted for 5.9% of total P/C premiums in 2022.
- The P/C industry employed 1.2 million people in the U.S. as of 2022.
Company and Market Share Statistics Interpretation
State Farm's lead may be cozy, but with personal lines like car and home insurance making up over half the market and the top ten companies controlling nearly half of it, the real competition is a sprawling, state-by-state scramble for your premium dollars.
Financial Performance Statistics
- The U.S. P/C industry's average combined ratio was 105.2% in 2022, indicating underwriting losses.
- Net underwriting losses for P/C insurers totaled $37.4 billion in 2022.
- Policyholder surplus growth rate was 4.1% in 2022, reaching $1.15 trillion.
- Pre-tax operating income for P/C was $85.6 billion in 2022, up from $72.3 billion in 2021.
- Return on equity (ROE) for U.S. P/C insurers averaged 10.4% in 2022.
- Investment yield for P/C insurers was 3.2% in 2022, down from 3.5% in 2021 due to rate environment.
- Net investment income generated $72.1 billion in 2022 for the industry.
- Loss ratio for overall P/C was 73.5% in 2022, up from 70.2% in 2021.
- Expense ratio remained stable at 29.8% in 2022 for P/C insurers.
- Dividend payout ratio for P/C stocks averaged 25.3% in 2022.
- Leverage ratio (premiums/surplus) was 2.41 in 2022, up from 2.35 in 2021.
- Capacity (premiums to surplus) increased to 2.42x in 2022.
- After-tax operating profit margin was 8.7% in 2022 for P/C.
- Quick liquidity ratio for P/C was 1.28 in 2022.
- Best's capital adequacy ratio (BCAR) averaged 85.2 for top P/C groups in 2022.
- Overall profitability index rose to 112 in 2022 from 108 in 2021.
- P/C combined ratio projected at 101.5% for 2023 full year.
- Investment income forecasted to reach $78 billion in 2023 for U.S. P/C.
- Policyholder surplus growth projected at 5.2% to $1.21 trillion in 2023.
Financial Performance Statistics Interpretation
The industry is essentially subsidizing its customers' premiums with its investment portfolio, as it lost a staggering $37.4 billion on underwriting but still managed to post a healthy 10.4% return on equity thanks to a $72 billion boost from its investments.
Loss and Claim Statistics
- U.S. P/C incurred losses and loss adjustment expenses were $512.3 billion in 2022, up 9.8% from 2021.
- Catastrophe claims paid by P/C insurers in 2022 exceeded $103 billion, highest since 2017.
- Auto physical damage incurred losses reached $92.4 billion in 2022, up 14.2%.
- Homeowners line incurred losses totaled $78.6 billion in 2022, a 18.5% increase.
- Commercial multiperil incurred losses were $112.7 billion in 2022, rising 7.9%.
- Workers' comp incurred losses hit $48.2 billion in 2022, up 3.6%.
- Allied lines losses and LAE were $55.3 billion in 2022, increasing 11.4%.
- Private passenger auto liability incurred losses reached $110.5 billion in 2022, up 11.7%.
- Fire losses incurred totaled $32.1 billion in 2022, a 12.8% rise.
- Medical professional liability losses were $9.4 billion in 2022, up 2.8%.
- Commercial casualty losses amounted to $45.8 billion in 2022 incurred, growing 6.2%.
- Other liability occurrence losses hit $42.6 billion in 2022, up 5.9%.
- Products liability losses were $6.7 billion in 2022, increasing 4.1%.
- Farmowners losses totaled $2.9 billion incurred in 2022, up 6.3%.
- Inland marine losses reached $8.2 billion in 2022, a 9.5% increase.
- Ocean marine incurred losses were $2.4 billion in 2022, up 5.2%.
- Aircraft losses amounted to $1.3 billion in 2022, growing 3.4%.
- Fidelity/surety losses hit $6.8 billion incurred in 2022, up 4.6%.
- Catastrophe losses estimated at $110 billion globally in 2023.
- U.S. severe convective storm losses totaled $52 billion in 2023.
- Auto liability loss ratio expected to hit 78% in 2023.
Loss and Claim Statistics Interpretation
While Mother Nature threw a $103 billion tantrum and America's drivers apparently forgot how to park, the property and casualty insurance industry's 2022 balance sheet reads like a receipt from a year-long demolition derby held during hurricane season.
Overall Market Statistics
- In 2022, U.S. property/casualty insurance industry direct premiums written reached $808.4 billion, a 7.2% increase from $753.8 billion in 2021.
- Global property/casualty insurance premiums grew by 2.1% in real terms in 2022 to $2.8 trillion, driven by exposure growth and rate increases.
- The U.S. P/C industry's net premiums earned in 2022 totaled $697.2 billion, up 6.8% from the previous year.
- Property/casualty insurance penetration in the U.S. stood at 3.4% of GDP in 2022, compared to 2.9% in 2019 pre-pandemic.
- In 2023 Q1-Q3, U.S. P/C direct premiums written surged 10.5% year-over-year to $687.3 billion.
- Global non-life insurance market size was valued at $2.92 trillion in 2023, projected to reach $4.15 trillion by 2030 at a CAGR of 5.1%.
- U.S. P/C insurers held $1.2 trillion in policyholder surplus as of year-end 2022, up 4.1% from 2021.
- The property/casualty sector accounted for 48% of total U.S. insurance premiums in 2022.
- In Europe, P/C premiums grew 4.2% nominally in 2022 to €1.1 trillion despite inflation pressures.
- U.S. catastrophe losses in 2022 totaled $165 billion before reinsurance, the fourth-highest on record.
- Asia-Pacific P/C premiums increased 3.8% in real terms in 2022 to $0.9 trillion.
- The global P/C insurance density was $336 per capita in 2022, up from $320 in 2021.
- U.S. P/C net premiums written grew 8.3% to $752 billion in 2023 full year estimate.
- Latin America P/C market expanded 6.5% in real terms in 2022 amid economic recovery.
- U.S. P/C industry's total admitted assets reached $2.3 trillion in 2022.
- In 2023, U.S. P/C net premiums written are projected to grow 7.5% to $809 billion.
- Global P/C premiums expected to rise 3.2% in real terms in 2023.
Overall Market Statistics Interpretation
Despite facing a staggering $165 billion in catastrophe losses, the U.S. property/casualty insurance industry defiantly shrugged it off, swelling its premiums by over 7% and padding its policyholder surplus to a comfy $1.2 trillion, proving that while roofs may blow away, the business of protecting them is built on bedrock.
Premium Statistics
- In 2022, direct premiums written for private passenger auto insurance totaled $289.5 billion, up 12.4% YoY.
- Homeowners insurance direct premiums written in the U.S. hit $124.2 billion in 2022, a 14.1% increase.
- Commercial multiperil premiums written grew to $143.8 billion in 2022, up 8.6%.
- Workers' compensation direct premiums were $59.4 billion in 2022, increasing 4.2% from 2021.
- Allied lines premiums reached $80.1 billion in direct premiums written in 2022, up 9.7%.
- Fire and allied lines direct premiums written totaled $45.6 billion in 2022, a 11.3% rise.
- Medical malpractice insurance premiums written were $11.8 billion in 2022, up 3.1%.
- Commercial auto direct premiums written amounted to $52.3 billion in 2022, increasing 7.9%.
- Other liability premiums hit $64.7 billion in 2022, a 6.5% growth.
- Farmowners multiple peril premiums were $4.2 billion in 2022 direct written, up 5.8%.
- Boiler and machinery premiums totaled $2.1 billion in 2022, increasing 4.7%.
- Inland marine direct premiums written reached $12.4 billion in 2022, up 10.2%.
- Ocean marine premiums were $3.5 billion in 2022, a 6.1% increase.
- Aircraft premiums written amounted to $1.8 billion in 2022 direct, up 3.9%.
- Fidelity/surety direct premiums totaled $10.2 billion in 2022, growing 5.4%.
- U.S. homeowners premiums projected to increase 8.2% in 2023 to $134.5 billion.
- Private passenger auto premiums forecasted at $325 billion DPW in 2023.
- Workers' comp premiums expected to grow 4.8% to $62.3 billion in 2023.
- Commercial casualty premiums projected up 9.1% in 2023.
Premium Statistics Interpretation
While insurers are busy counting their billions, policyholders everywhere are feeling the squeeze, with premiums soaring across the board like a determined but unwelcome balloon at every party.
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