Advertise
Resources
Member, Beacon International Group, Ltd.
U.S. property/casualty insurers reported $31.1 billion in net income in 2009, a 260.3% increase from the previous year, Oldwick, N.J.-based A.M. Best Co. Inc. said in a special report.
Best said the P/C insurers’ results were driven by improved underwriting results, the continued recovery of the financial markets and disciplined capital management.
Boosting 2009 underwriting results were a quiet hurricane season, significant reserve releases, and a sizable reduction in underwriting losses in the mortgage and financial guarantee segments, the rating agency said.
“The overall industry’s conservative operating strategy and effective capital management leave it sufficiently capitalized to navigate the underwriting cycle and volatility in the financial markets, but challenges remain,” Best said in the report, which was released last week.
Among other results, net premiums written declined for the third consecutive year, the first time that has occurred in the years Best has been conducting the survey. P/C insurers wrote $419.3 billion in net premiums in 2009, a 5.9% decline from 2008, Best said.
The industry’s combined ratio improved to 101.2% in 2009 vs. 104% the prior year. Policyholder surplus increased to $519.3 billion at year-end, an 8.8% increase from the previous year. Copies of the report, “U.S. P/C Industry Results Rebound as Cat Losses Ease, Investments Rise,” can be obtained by going to www.bestweek.com and clicking on Best’s Special Reports. The report costs $65 for nonsubscribers.