It said the combined ratio appears to be the lowest on record in 50 years. "This indicates the highest profit levels in recent history."

CFA said that using a number of common measures of financial health, the study found that balance sheets for p-c insurers "are in better condition overall than in almost any time in recent history."

J. Robert Hunter, director of insurance for CFA, said, "Profits and a solid insurance industry are a good thing, but unjustified profits and excessive capitalization harm consumers."

Mr. Hunter, who wrote the study, said it estimates that after-tax returns for insurers for 2006 are $60 billion. Profits for the record years of 2004, 2005 and 2006 are estimated to be $149.2 billion.

The loss and loss adjustment expense ratio for 2006 is estimated to be 68.3 percent, the lowest in 27 years. The years 2003 through 2006 represent four of the six lowest loss and LAE ratios in the last 27 years, Mr. Hunter said his data indicates.

"Representatives of the insurance industry often claim that high premiums and profits are necessary to compensate for the high risks they bear," he said. In fact, he added, "insurance is a low-risk investment."

Mr. Hunter said using standard measures of stock market performance that assess financial safety and stock price stability, the p-c industry represents "a below-average risk compared to all stocks in the market, safer than investing in a diversified mutual fund."

Regarding specific companies, the report said:

o American International Group's loss ratio for 2006 for nine months is 50.9 percent, the lowest since at least 1987. That means that AIG "is barely paying half of the premiums it receives in benefits."

o Allstate Insurance Group's loss ratio in 2006 for nine months is 43.5 percent, the lowest since at least 1987. CFA called this information "shocking given Allstate's moves to nonrenew policies for tens of thousands of consumers in coastal states from Maine to Texas, especially in Florida, Mississippi and Louisiana."

o St. Paul Travelers Group's loss ratio in 2006 for nine months is 46.8 percent, the lowest since at least 1987.

o Berkshire Hathaway Insurance Group's loss ratio in 2006 for nine months is 56.1 percent, the lowest since at least 1987.

o Progressive Insurance Group's loss ratio in 2006 for nine months is 53.1 percent. Since 1987, Progressive had a loss ratio lower than this only once, in 2004, at 51.9 percent.

o Hartford Insurance Group's loss ratio in 2006 for nine months is 53.2 percent, the lowest since at least 1987. The 2006 loss ratio is more than 10 points below the long-term average.

"By any measure, 2006 profits are excessive," the report said. "The astonishingly low loss ratio report above means that consumers are receiving record low payouts for their premium dollars as insurers reap unprecedented profits."

In responding to the report, the Insurance Information Institute said insurers were fixing "the roof while the sun was shining." The organization estimated that property-casualty insurers boosted by $55.7 billion its cumulative claims paying resources in 2006, a number equal to 93 percent of the $59.8 billion in expected net income.

The $55.7 billion figure was a near record, second only to the $62 billion increase in 2003 as insurers worked to recover from the September 11, 2001 terrorist attacks," the I.I.I. said.

Robert P. Hartwig, I.I.I. president and chief economist, said the industry had reinvested billions of dollars in 2006, allowing claims-paying resources to reach an all-time record high estimated at $481.5 billion.

"This reinvestment by the industry comes at a critical time for insurers and consumers alike," Mr. Hartwig said. "The industry is bolstering its capital position in advance of what is already predicted to be a 2007 hurricane season that is 40 percent above average." Insurers paid out more than $80 billion in insured losses during the 2004 and 2005 hurricane seasons, he said.

The American Insurance Association also responded to CFA, noting that "insurance company profits are essential to providing insurance coverage relied upon daily by American families and businesses."

Marc Racicot, president of the AIA, called the CFA "allegations" an "unfounded attack on individual p-c insurance companies, as well as the industry in general."

Mr. Racicot said, "Last year was a fortunate anomaly given that in virtually every year over the past two decades, insurers lost money on their core business operations." He added, "Fortunately for all Americans, the p-c industry had a much better year financially in 2006 than in 2005 or 2004, when we saw record losses from natural disasters."

The Property Casualty Insurers Association of America had a similar reaction. "Consumers are among the primary beneficiaries of a financially strong insurance industry," said Genio Staranczak, PCI chief economist.

"Profits allow insurers to reinvest in the business so that there is sufficient capital available to pay claims when a major catastrophe occurs," Mr. Staranczak noted.