The newly released data from the Reinsurance Association of America shows that 26 major U.S. reinsurance companies averaged a 106.2 combined ratio, with a 79.8 loss ratio for 2004, deteriorating from 101.2 combined ratio and 74 loss ratio reported by a similar group of reinsurers in 2003.

Further, the overall net underwriting loss for the reinsurance group more than doubled in 2004. The underwriting loss rose to $1.8 billion last year, significantly worse than the $560 million loss reported in 2003.

The group reported overall net written premiums of $28.78 billion, falling 6.1 percent from $30.63 billion in 2003. The investment income also fell, down to $4.76 billion for 2004 from $5.62 billion in 2003.

Still, the reinsurers managed to pull off a slight improvement in their overall net income. The 26 reinsurers' combined income was $3.14 billion, better than $3.07 billion reported by a similar group in 2003. The reinsurers especially benefited from the overall net realized capital gain of $1.8 billion last year, a $1 billion increase from $873 million in 2003.

The Washington, D.C.-based RAA also found that reinsurers' policyholder surplus increased to $61.21 billion in 2004, up 9.5 percent from 55.91 billion in 2003.