Fourth quarter 2013 underwriting gain was $128 million, a substantial improvement compared with a loss of $229 million in fourth quarter 2012, as a result of improved current accident year results and lower catastrophe losses. Catastrophe losses totaled $28 million, before tax, in fourth quarter 2013, a substantial decline from fourth quarter 2012 catastrophe losses of $335 million, before tax, which included significant losses from Storm Sandy. PYD had a relatively modest impact on underwriting results in both periods, totaling an unfavorable $15 million, before tax, in fourth quarter 2013 compared with an unfavorable $9 million, before tax, in fourth quarter 2012.
Fourth quarter 2013 combined ratio was 94.9 compared with 109.2 in fourth quarter 2012. Before catastrophes and PYD, the P&C (Combined) fourth quarter 2013 combined ratio improved 2.2 points to 93.2 compared with 95.4 in fourth quarter 2012, reflecting pricing and underwriting initiatives in P&C Commercial.
Fourth quarter 2013 written premiums increased 2% over the prior year period, reflecting 1% growth in P&C Commercial and 3% growth in Consumer Markets.
P&C CommercialFourth Quarter 2013 Highlights:
- Underwriting gain improved to $98 million compared with a loss of $193 million in fourth quarter 2012 due to lower catastrophe losses and better current accident year results
- Standard Commercial renewal written pricing increased 8% in fourth quarter 2013, consistent with the last five quarters
- Middle Market workers' compensation represented 30% of new business, compared with 38% in fourth quarter 2011
|($ in millions)||Three Months Ended|
|Dec. 31 2013||Dec. 31 2012||Change|
|Underwriting gain (loss)||$98||$(193)||NM|
|Combined ratio before catastrophes and PYD||92.5||97.8||5.3|
|Standard commercial price increases||8%||8%||—|