For 48 publicly traded property and casualty companies across various industry subsectors, aggregate operating earnings increased by 30% in 2013 compared to 2012, thanks to improved underwriting results due to lower catastrophe losses, says Fitch Ratings in a recent analysis.

Fitch says only seven of the 48 companies reported lower year-over-year operating return-on-equity in 2013, and the group's combined ratio improved by 5.2 points to 93.3. Only four of the 48 companies reported a 2013 combined ratio above 100, according to Fitch.

However, Fitch warns that 2013 could represent a peak for underwriting results and operating profitability for the next few years. Fitch says, “Pricing gains have slowed in primary lines and property-reinsurance rates declined at the Jan. 1 renewal. An anticipated return to normalized catastrophe activity and diminishment of reserve releases suggests that 2014 underwriting margins will more likely decline.”

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