Summary: ISO has recently released industry results for 2021, as compared to 2020. The results are based off of data representing an estimated 96% or greater of total premiums for private insurers, from ISO and the American Property Casualty Insurance Association. All results are calculated net of reinsurance.
A brief synopsis of the results follows:
| Category | Increase/Decrease | 2021 | 2020 | Comments |
| Net Income after tax | +1.6 billion | 61.9b | 60.3b | ISO estimates insurers' net loss and LAE from all catastrophes declined to 56.3B from 61.4B in 2020 |
| Pre-tax operating income | -4..4 billion | 54.0b | 58.5b | Contributions: Underwriting net loss of 3.8b, investment income of 54.3b (up 5% from 51.7 b 2020), and miscellaneous other income of 3.5b. Net investiment gains of 71..2b, a 14.4% increase from 62.2b 2020 |
| Capital gains | +6,4b | 16.9b | 10.5b | An increase of 60.6%, includes 18.3b from asset sales |
| Income taxes | +0.3b | 9.0b | 8.7b | Tax rat ratio (taxes to operating income) up 16.7 percentage points from 14.9 percentage points 2020 |
| Statutory ROR on average surplus | 6.4% | 6.9% | Results excluding mortgage and financial guaranty insurers: 6,2%, down from 6.9% 2020 | |
| Net Written Premium | +60.2b | 710.6b | 650.4b | An increase of +9.2%. ISO direct written premium estimates were up 2.3% in 2020 but increased to 9.4% in 2021 |
| Earned Premium | +47.3b | 685..0b | 637.7b | Increase of 7.4% over 2020 |
| Incurred loss and LAE | +49.8b | 496.9b | 447.1b | Increase of 11.1% over 2020 |
| Combined ratio | -.9% | 99.6% | 98.6% | Results excluding mortgage and financial guaranty insurers, an increase of 1.2%, to 99.9% 2021, from 98.6% 2020 |
| Personal Lines premium | +15.5b | 294.5b | 279.0b | Increase of 5.6% over 2020 |
| Personal Lines combined ratio | +6,9% | 102.7% | 95.7% | |
| Balanced insurer premiums | +6.8b | 134.2b | 127.4b | Increase of 5.4% over 2020 |
| Balanced combined ratio | -.2% | 100.7% | 100.9% | |
| Commercial Lines premium | +37.8b | 281.9b | 244.1b | Increase of 15.5% over 2020 |
| Commercial Lines combined ratio | -5.2% | 95.6% | 100,8% |
Industry Surplus:
The industry's combined surplus as of 12/31/2021 is $1,032.5b, a 13.5% increase from 2020′s surplus of $910.1b. The surplus increase of 122.5b includes 54.0b in operating income, 16.9b in capital gains, and 5.7b in new funds paid in. Surplus deductions include 33.4b in dividends to stockholders, 9.0b in income taxes, 4.0b in miscellaneous charges against surplus. Using a 12-month trailing premiuns, teh premium to surplus ratio decreased to 0,69 for 12/31/2021, from 0.71 in 2020. The ratio of loss and LAE reserves to surplus decreased to 0.73 in 2021, from 0,76 in 2020.
Property & Casualty (based on 99.4% of insurer industry data):
| Category / Line of Business | Increase/Decrease | 2021 | Comments |
| *Property Net WP | +8.3% | 320.9m | * Fire, Allied Lines, Homeowners, Commercial Multi Peril, Auto Physical Damage |
| Property Pure Loss Ratio | -4.0% | 65.7% | Major property losses up 13.6%, driven by auto physical damage losses. |
| Homeowners Net WP | +7.3% | 103.0m | |
| Homeowners Pure Loss Ratio | -2.3% | 66.3% | Decreased from 68.6% in 2020 |
| Auto physical damage losses | +33.8% | 15.6% loss ratio | Auto physical damage premiums increased by just 5.6% over 2020, to $115.3m. 2021 was the largest annual deterioration for this line of business since at least 1980. |
| **Casualty Net WP | +8.9% | 318.5m | ** Workers compensation, general liability, auto liability, medical professional liability |
| Casualty Pure Loss Ratio | -2.7% | 59.9% | |
| Workers compensation Net WP | 0.2% | 37.1m | |
| Workers compensation pure lsos ratio | -0.9% | 45.8% | Down from 46.7% in 2020 |
| Auto Liability losses | +15.4% | 183.1m | This is actually typical, as 2020 was unusually low due to the pandemic |
| ALL LINES Net WP | 9.4% | 707.7m | |
| ALL LINES Puree Loss Ratio | -2.5% | 62.5% | Up from 59.5% in 2020 |
From 2012-2021 All Lines pure loss ratio averaged 59.9%, with an average loss ratio for property of 60.6% and casualty loss ratio of 60,8%, with the spikes in property for 6 of the 10 years due to catastrophes.
Individual lines showed volatile results, with international at 36.0 percentage points deterioration, and mortgage and financial guaranty insurers showing a 31.7% improvement.
Copyrighted material of Insurance Services Office, Inc., with its permission.