US homeowners industry loss ratio again nears 90%

The U.S. homeowners insurance industry's loss ratio again approached 90% in the third quarter, as Hurricane Ida undoubtedly contributed to the unfavorable third-quarter results.

Direct incurred loss ratios for two of the top 20 homeowners insurers exceeded 100%, with The Progressive Corp. reporting the highest loss ratio at 135.5%, followed by CSAA Insurance Exchange at 107.6%.

State Farm Mutual Automobile Insurance Co. retained its spot as the largest writer of homeowners insurance in the U.S. with $6.26 billion of direct premiums written during the quarter, equivalent to year-over-year premium growth of 14.9%.

The Allstate Corp. held the second spot with $2.88 billion direct premiums written, representing yearly premium growth of 7.9%, while United Services Automobile Association ended the quarter as the third-largest writer of homeowners insurance with premium growth of 8% year over year.

An S&P Global Market Intelligence analysis showed that the industry's overall premiums remained on an upward trajectory in the third quarter, increasing to $28.69 billion from $26.70 billion, on a yearly basis.

Among the top 20 homeowners insurers, Tokio Marine Holdings Inc. recorded the largest year-over-year premium growth in the third quarter at 29.9%. The insurer jumped to the 15th spot with $281.1 million direct premiums written during the period.