Catastrophe losses totaled $66 million, before tax, in third quarter 2013, including $11 million, before tax, of unfavorable development on first half 2013 catastrophe losses. Third quarter 2012 catastrophe losses totaled $10 million, before tax, net of favorable development on first half 2012 catastrophe losses of $19 million, before tax.
Unfavorable PYD totaled $17 million, before tax, in third quarter 2013 compared with favorable PYD of $33 million, before tax, in third quarter 2012. Unfavorable PYD in third quarter 2013 included unfavorable PYD of $26 million from P&C Commercial and $2 million from P&C Other Operations. These amounts were partially offset by favorable PYD of $11 million from Consumer Markets, principally reflecting favorable PYD on catastrophes, including Storm Sandy.
Before catastrophes and PYD, the P&C (Consolidated) third quarter 2013 combined ratio improved to 92.8 compared with 96.3 in third quarter 2012, reflecting pricing and underwriting initiatives in the P&C Commercial and Consumer Markets segments.
Third quarter 2013 written premiums increased 2% over the prior year period, reflecting 1% growth in P&C Commercial Markets and 3% growth in Consumer Markets.P&C CommercialThird Quarter 2013 Highlights:
- Underwriting gain improved to $30 million compared with $14 million in third quarter 2012 due to better current accident year results partially offset by higher catastrophes and unfavorable PYD
- Standard Commercial renewal written pricing increased 8% in third quarter 2013, consistent with the last four quarters
- Middle Market workers’ compensation and property written pricing each increased 9% during third quarter 2013
|($ in millions)||Three Months Ended|
|Sept. 30 2013||Sept. 30 2012||Change|
|Combined ratio before catastrophes and PYD||93.3||97.5||4.2|
|Standard commercial price increases||8%||8%||—|