A benign catastrophe season helped the U.S. property-casualty industry garner $23.7 billion in underwriting profits for the first nine months of this year, according to A.M. Best.
The industry's exceptional results illustrated the dramatic turnaround from the same period in 2005, when catastrophe-fueled losses led to a $2.8 billion underwriting loss, the Oldwick, N.J.-based rating agency noted in a special report.
The U.S. p-c industry's combined ratio improved to 91.9 percent in the nine-month period ended Sept. 30, down 8.1 percentage points from 100 reported for the same period last year.
Best said the domestic p-c industry currently is on pace for its best underwriting performance since 1953, when it posted a 93.1 combined ratio.
Net income for the nine-month period soared from a year earlier to $50 billion, an increase of 61 percent from the same period of 2005, when claims from hurricane losses weighed heavily on results.
As a result of its strong operating performance, the industry's policyholder surplus grew $38 billion, or 8.7 percent, to $477 billion through the first nine months of 2006 from $439 billion recorded at year-end 2005.
For the first nine months of 2006, Best said net premiums written for the industry reached $345 billion, a 4.3 percent increase over the same period in 2005. In addition, net premiums earned increased 4.1 percent to $332 billion.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
