U.S. home insurers are said to face biggest loss of century in 2023 (NYSE:ALL)

Homeowners insurance companies in the United States last year experienced the worst underwriting loss this century, the Financial Times reported on Sunday. Natural disasters, inflation, population growth in riskier regions pressured the finances of carriers.

They suffered net underwriting loss of $15.2 billion, according to rating agency AM Best. The figure was the worst since at least 2000 and more than twice the losses of 2022.

Rising populations in areas that are most susceptible to natural disasters was a major reason for the losses, the FT reported. Six states prone to severe weather, such as California and Texas, made up half of the country’s population growth in the 2010s, census data show.

Some insurers recently have withdrawn from disaster-hit areas or raised premiums to levels that make home owners cost-prohibitive for many consumers.