JERSEY CITY, N.J., Dec. 21, 2010 – Private U.S. property/casualty insurers’ net income after taxes rose to $26.7 billion through nine-months 2010 from $16.4 billion through nine-months 2009, with insurers’ annualized rate of return on average policyholders’ surplus – a key measure of overall profitability – increasing to 6.7 percent from 4.6 percent.
Reflecting insurers’ $26.7 billion in net income and other developments in the first nine months of 2010, policyholders’ surplus – insurers’ net worth measured according to Statutory Accounting Principles – rose $33.5 billion, or 6.5 percent, to $544.8 billion at September 30, 2010, from $511.4 billion at year-end 2009.
Contributing to the increases in the insurance industry’s net income, overall rate of return, and surplus, insurers’ net investment gains – the sum of net investment income and realized capital gains (or losses) on investments – grew $13.1 billion to $39.5 billion in nine-months 2010 from $26.3 billion in nine-months 2009.
Partially offsetting the growth in investment gains, insurers’ net losses on underwriting grew to $6.2 billion for nine-months 2010 from $3.2 billion for nine-months 2009. The combined ratio – a key measure of losses and other underwriting expenses per dollar of premium – deteriorated to 101.2 percent for nine-months 2010 from 100.7 percent for nine-months 2009, according to ISO and the Property Casualty Insurers Association of America (PCI). See full article here.
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, the company provides statistical, actuarial, underwriting, and claims information; policy language; information about specific locations; fraud-identification tools; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics. For more information, visit www.iso.com and www.verisk.com.
About Insurance Information Institute
For information about insurance, go to the I.I.I. Web site.
About Property Casualty Insurers Association
PCI is the nation’s premier insurer trade association, representing over 1,000 companies that write 37.4 percent of the property casualty market. The association is also an advocate for sound public policy. www.pciaa.net