The Insurance Insider's US specialty composite recorded a third quarter operating loss on equity as all the companies in the group absorbed major claims from the period's catastrophe events
US specialty combined ratios escalated well into triple digits in the third quarter following elevated catastrophe losses, while ex-cat underwriting performances improved overall year-on-year.
US specialty players continued to increase their exposure during the third quarter of 2017, with gross written premiums (GWP) rising by 10.8 percent, according to analysis by The Insurance Insider.
Universal Insurance Holdings net income plunged 63 percent in the third quarter as claims from Hurricane Irma eroded the Florida carrier’s underwriting profits.
Bermuda-based carriers not only saw their third quarter earnings evaporate but also as much as six quarters worth of operating profits following an active hurricane season that is expected to yield up to $100bn in industry insured losses.
Bermuda-based carriers actively pursued cost reductions in the third quarter as core margins deteriorated and the past quarter's hurricane season sent combined ratios into the triple digits.