Highline Data is the data affiliate of Highline Media, the parent company of National Underwriter.

In December, when Jersey City, N.J.-based Insurance Services Offices published nine-month 2004 results including a combined ratio of 97.9 for the period, analysts widely predicted that the full-year combined ratio would come in under 100 as well. The 2004 underwriting profit would be the first since 1978, the New York-based Insurance Information Institute reported at the time.

Net income for full-year 2004 rose 33 percent to $42 billion from $32 billion in 2003, Highline Data said last week.

Highline Data reported these results based on regulatory filings of 2,552 individual companies?93 percent of expected filers?including 98 of the top 100 insurers ranked by premium volume.

(Some U.S. operations of ACE Ltd. are among the late filers not yet included in the totals. Late-filer results may push the industry combined ratio slightly above 98, but not close to 100.)

Surplus grew 13 percent to nearly $500 billion?$498 billion to be exact. Surplus was $440 billion at year-end 2003.

Breaking down the components of the combined ratio, Highline said the expense ratio remained at 25, while the loss and loss adjustment expense ratio fell to 72 from 74 in 2003 for the 2,552 filers. (The industry aggregate loss and loss adjustment expense ratio for all filers, which numbered close to 3,100, was actually slightly higher in 2003?74.9.)