| Amount | Percent of total investments |
|---|
| Investment type | 2020 | 2021 | 2022 | 2020 | 2021 | 2022 |
|---|
| Bonds | $1,111,622 | $1,178,226 | $1,144,666 | 55.38% | 53.02% | 55.31% | | Stocks | $536,272 | $657,175 | $574,911 | 26.71% | 29.58% | 27.78% | | Preferred | 16,515 | 17,447 | 15,968 | 0.82 | 0.79 | 0.77 | | Common | 519,757 | 639,728 | 558,943 | 25.89 | 28.79 | 27.01 | | Mortgage loans on real estate | $23,660 | $27,021 | $25,729 | 1.18% | 1.22% | 1.24% | | First liens | 23,298 | 26,526 | 25,114 | 1.16 | 1.19 | 1.21 | | Other than first liens | 362 | 495 | 615 | 0.02 | 0.02 | 0.03 | | Real estate | $13,739 | $13,301 | $12,655 | 0.68% | 0.60% | 0.61% | | Properties occupied by company | 9,151 | 8,875 | 8,151 | 0.46 | 0.40 | 0.39 | | Properties held for income production | 4,297 | 4,017 | 4,143 | 0.21 | 0.18 | 0.20 | | Properties held for sale | 290 | 409 | 361 | 0.01 | 0.02 | 0.02 | | Cash, cash equivalent and short-term investments | 140,244 | 156,464 | 148,026 | 6.99 | 7.04 | 7.15 | | Derivatives | 537 | 609 | 1,274 | 0.03 | 0.03 | 0.06 | | Other invested assets | 175,007 | 180,263 | 157,110 | 8.72 | 8.11 | 7.59 | | Receivable for securities | 2,326 | 3,177 | 2,680 | 0.12 | 0.14 | 0.13 | | Securities lending reinvested collateral assets | 4,537 | 6,520 | 3,085 | 0.23 | 0.29 | 0.15 | | Aggregate write-in for invested assets | -547 | -711 | -749 | NA | NA | NA | | Total cash and invested assets | $2,007,396 | $2,222,046 | $2,069,387 | 100.00% | 100.00% | 100.00% |
|
(1) Includes cash and net admitted assets of property/casualty insurers.
NA=Not applicable.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
FAQs
Property/casualty insurers invest primarily in safe, liquid securities, mainly bonds. These provide stability against underwriting results, which can vary considerably from year to year. The majority of bonds are government issued or are high-grade corporates.
What are the P&C trends in 2024? ›
P&C Insurance Trends in 2024
P&C insurers are increasingly turning to AI to streamline operations and enhance customer interactions. AI-powered solutions are being utilized to automate repetitive tasks, improve process efficiency, and provide personalized experiences for policyholders.
What type of investments do insurance companies make? ›
Debt securities: bonds, notes, and redeemable preferred stock. Equity securities: common stock, mutual fund shares, and non-redeemable preferred stock. Short-term investments: commercial paper, certificates of deposit, mutual funds, and money market funds. Securities lending and repurchase agreements (repos)
Is P&C insurance growing? ›
Property & Casualty Insurance Market size was valued at USD 1.8 trillion in 2023 and is estimated to register a CAGR of over 5.5% between 2024 and 2032.
How do P&C insurers make money? ›
Insurance companies make money in two main ways: Charging premiums to the insured and investing the insurance premium payments.
What are the two major sources of revenue for a property and casualty insurance company? ›
Major source of revenue to a property and casualty insurance company.
- Premiums. The major source of revenue for an insurance company is the periodical premiums paid to them by the policyholders.
- Investments. Another source of revenue is the money the insurance company earns from the investments it ventures into.
The US P&C insurance industry enters 2024 with strong momentum. Profitability was below insurers' cost of capital last year, but strong premium increases, easing claims cost inflation and higher investment returns began to boost industry results by 2H23.
What is the largest expense most P&C insurers face? ›
- Loss payments arising from claims – this constitutes the major expense category for most insurers. For P&C insurers, loss payments often represent 70 percent to 80 percent of their total costs.
How big is the P&C market? ›
The global property and casualty insurance market size was estimated at USD 3,674.46 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030.
What is the most profitable form of insurance? ›
Life insurance stands out as one of the most profitable types of insurance due to its steady demand, attractive commissions, high premiums, and long-term policy tenure.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
Do insurance companies invest in real estate? ›
Although insurers invest in a diverse set of industries, they have significant investments in industrial and manufacturing firms, financial firms, and real-estate-related securities.
Who is the biggest P&C insurer? ›
1. State Farm. State Farm is the industry's biggest player, both in the US and overseas. The Bloomington, Illinois-based P&C insurance giant wrote almost $78 billion worth of premiums in the past year.
What is the outlook for the P&C industry? ›
We expect 2023 to be a transition year for US P&C industry profitability, from a difficult 2022 to a stronger 2024 as higher premiums and interest rates improve industry results. The P&C industry has not yet reached the inflection point between premium growth rates and claims costs.
What do the top P&C insurance agents make? ›
Why do property and casualty insurance companies invest more funds than life insurance companies in the money markets? ›
Answer and Explanation:
To achieve an adequate degree of liquidity, property/casualty insurers will usually structure their investment portfolios with a greater proportion of cash and cash equivalents, such as money market funds, than life insurers.
What are invested assets in an insurance company? ›
Invested Assets means bonds, stocks (common and preferred), short term investments and similar invested assets carried on the Company's statutory convention statements on Schedules BA, DA and D as admitted assets as permitted by applicable law.
