Net income for the property-casualty industry is expected to plunge 80 percent to $14 billion, due to deteriorating underwriting and investment results, according to a new A.M. Best report.
The "U.S. Property-Casualty Review & Preview" report noted that the industry's operating results "were marked by ongoing soft market conditions, above-average catastrophe losses, higher underwriting losses in the mortgage and financial guaranty segments, continued turmoil in the credit markets, and extreme volatility in equity markets."
Aside from weak investment returns, the Oldwick, N.J.-based rating firm said the industry should expect an underwriting loss of $21.5 billion in 2008, after gains of $19.5 billion and $31.6 billion in 2007 and 2006, respectively.
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