NU Online News Service, March 7, 1:00 p.m. EST
Net income at American Family Insurance Group fell more than 39 percent for the year on record losses from catastrophe claims.
Net income in 2011 for the Madison, Wis.-based insurer was $295.2 million, compared to $487.1 million in 2010.
The mutual insurance company paid a record $1.2 billion in catastrophe claims during 2011, mostly from Midwestern wind and hail storms in April and May that generated $650 million in claims.
These storms included a devastating tornado in Joplin, Mo. on May 22 that resulted in $125 million in claims payouts. A four-day span in late May spawned wind, hail and tornadoes that caused more than $210 million in payments to the insurers' policyholders in Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
Catastrophes were primarily to blame for American Family posting a property and casualty underwriting loss of $322.2 million in 2011 compared to a gain of $12.2 million in 2010. The P&C business finished 2011 with a 106.1 combined ratio.
Net premiums written fell to $5.2 billion, a 3 percent decline from 2010.
Still, American Family says policyholder equity was $5.7 billion at the end of 2011 compared to $5.4 billion at the end of 2010.
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.
