Old Republic and Erie were named as the insurance companies with the least volatile earnings, according to the Aon 2004 Insurance Earnings Volatility Study.
The Old Republic International Corp., Chicago, topped the list in commercial lines companies while the Erie Insurance Group, Erie, Pa., was among the top companies in personal lines.
The study measures cumulative earnings in one-, two-, three- and five-year periods ending Dec. 31. More than 80 public companies with commercial, specialty, personal, reinsurance, and life and health lines participated in the study.
"Despite hurricane catastrophe losses, disciplined underwriting and investment gains led to strong earnings for the property and casualty industry segment," said Michael Bungert, president of Aon Re Global, Chicago.
Other commercial lines carriers with the least volatile earnings were The Cincinnati Insurance Company and The Hartford Financial Services Group. In the personal lines sector, Cleveland area-based Progressive Insurance Corp. and the Los Angeles area-based Mercury Insurance Group were also ranked high.
In reinsurance, Renaissance Re Holdings Ltd. and The Everest Re Group, both of Bermuda, ranked the highest in the least volatile category.
"Investors place a large amount of emphasis on earnings growth and earnings volatility among a number of factors when evaluating investment opportunities," Mr. Bungert said. "We believe that less volatile earnings over time will contribute to increased shareholder value."
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