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Growth in net premiums and a decline in policyholder dividends were eclipsed by losses and expenses to result in a $6.3 billion net underwriting loss for the U.S. property/casualty industry at the half-way mark of 2022.

According to a special report from AM Best, the underwriting losses booked by the U.S. P/C industry during the first half of 2022 was down $11.4 billion from the same time period in 2021.

“The personal lines segment, specifically the auto lines of business, were responsible for the decline in underwriting results,” AM Best said.

U.S. P/C industry net income at June 30 was $31.4 billion, down 17.7 percent compared with the first six months of 2021. The combined ratio worsened to 100 compared with 97 a year ago. Excluding favorable reserve development during the first six months, the accident-year combined ratio was 101.9.

According to AM Best, the industry saw a 9.3 percent growth in net premiums earned to $359.2 billion and decreased policyholder dividends by 27.7 percent. However, losses and loss adjustment expenses increased 15.8 percent to $264.5 billion and underwriting expenses went up over 7 percent to $99.3 billion.