Despite several high-profile catastrophes, the U.S. homeowners insurance industry's loss ratio improved by 14 percentage points in the third quarter compared to the prior-year period.
The industry's loss ratio was above 80% in the third quarter of 2017, mainly due to devastating hurricanes Harvey, Irma and Maria.
This past quarter, 14 of the top 20 homeowners writers saw improvement in their direct incurred loss ratios on a year-over-year basis. Overall, the aggregate loss ratio for the top 20 insurers, which controlled 73% of the U.S. homeowners market, decreased to 66.9% from 71.1% in the prior-year period.
Among individual writers, the biggest loss ratio was reported by American International Group Inc. at 177.3%, which was primarily attributed to catastrophe losses in North America and Japan.
The industry also saw higher premiums in the third quarter, booking an increase of 4.3%, as compared to 3.6% growth in the third quarter of 2017. Progressive Corp. stood out with a second consecutive quarter of double-digit premium growth on a year-over-year basis.
Progressive's premiums rose 28% to $381.2 million during the quarter ended Sept. 30. This helped the insurer to become the 12th-largest homeowners underwriter nationwide.
S&P Global Market Intelligence offers a variety of tools to analyze the underwriting performance of insurance companies.
Click here for a template to review quarterly underwriting information for insurance companies. Quarterly underwriting information by line of business is available in Parts 1 and 2 of the NAIC quarterly statements filed by U.S. insurance subsidiaries.