After 15 consecutive quarters of lagging premium growth in commercial lines, personal lines became the main driver again, according to a Swiss Re report released last week.

According to the reinsurer’s U.S. P/C outlook report, first-quarter 2023 direct premiums written were 8.4 percent higher than in first-quarter 2022.

Swiss Re noted the increase was driven by strong rate gains in personal lines and commercial property.

Personal auto and homeowners premiums each grew by double-digits the first quarter this year, the report indicated.

Due to persistent inflation and an active first quarter for natural catastrophes, loss costs were up 20 percent on a direct basis, the report found.

The net combined ratio, at nearly 103 percent, was the worst first-quarter underwriting result in over a decade.

Investment yields contributed 33 percent more to net income than they did a year ago, the report found.

In commercial lines, strong property growth was offset by weak or negative growth in liability lines.

Swiss Re forecasts that returns on equity will continue to improve this year for U.S. P/C insurers and next. Swiss Re is maintaining ROE estimates of 8.0 percent for the sector in 2023 and 9.5 percent in 2024, with higher premium rates and investment yields and easing claims severity factoring into the forecasts.

Swiss Re maintains premium growth estimates of 7.5 percent in 2023 and 5.5 percent in 2024 for the U.S. P/C sector.

The combined ratio is forecast at 100 percent in 2023 and 98.5 percent in 2024.

Commercial lines rate trends are expected to increase through 2023 with inflation, natural catastrophes and geopolitical uncertainties exerting upward pressure on claims and operating costs, Swiss Re noted.