AM Best predicts surge in net investment income for US P/C sector

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AM Best’s recent market segment report indicates a notable increase in the estimated net investment income within the US property and casualty (P/C) market, with predictions exceeding $85 billion in 2024.

In 2018, the industry’s net investment income was $57 billion, showing no significant increase until 2022, when it surged to $71.5 billion.

According to the ratings agency, net investment income is anticipated to remain relatively steady in 2023, at $75.9 billion.

However, AM Best highlights that the 2022 figures were influenced by a $10.8 billion intercompany distribution at one very large reinsurer, impacting the net investment income.

With no anticipated rate cuts until mid-year 2024, it is projected that net investment income will notably increase to $86.9 billion in 2024.

AM Best estimates “that insurers will continue to reap the benefits of appreciably higher investment yields and projects.”

The post AM Best predicts surge in net investment income for US P/C sector appeared first on ReinsuranceNe.ws.

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