U.S. property/casualty insurers' net income fell 71.6% to $4.76 billion in the first half of 2011 compared with the same period in 2010, according to an analysis released by two property/casualty industry groups.
According to the analysis by the Insurance Services Office Inc. and the Property Casualty Insurers Assn. of America that was released Friday, insurers suffered a net underwriting loss of $24.1 billion during the first six months of this year compared with an underwriting loss of $5.1 billion during the same period in 2010.
The industry's first-half combined ratio deteriorated to 110.5%.
“The deterioration in underwriting results is largely attributable to a spike in net losses and loss adjustment expenses” from catastrophes, the groups said in the analysis. “ISO estimates that insurers' net LLAE from catastrophes in first-half 2011 totaled $23.9 billion, up from $8 billion in first-half 2010.”
Insurers' net written premiums for the period grew modestly, up 2.6% from the year earlier to $218.79 billion.
U.S. property/casualty insurers’ aftertax net income increased nearly 21% to $34.7 billion in 2010 from a year earlier, according to an analysis released Wednesday.