U.S. property/casualty insurers' net income up 245% in first half: ISO, PCI report
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U.S. property/casualty insurers' net income in the first half of this year increased 245.2% from that of the same period a year earlier to $16.42 billion, according to a report issued Thursday by the Insurance Services Office and the Property Casualty Insurers Association of America.
“Improvement in underwriting results drove the increases in insurers' pretax operating income, net income after taxes, and overall rate of return, with net losses on underwriting dropping to $7 billion in first-half 2012 from $24.1 billion in first-half 2011,” according to the report. The report noted that the industry's first-half combined ratio improved to 102.2% from 110.5% during the same period a year earlier.
“The improvement in underwriting results is largely attributable to a drop in net losses and loss adjustment expenses (LLAE) from catastrophes,” said the report. “ISO estimates that insurers' net LLAE from catastrophes in first-half 2012 totaled $12.6 billion, down from $25.7 billion in first-half 2011. These amounts exclude LLAE that emerged after insurers closed their books for each period but do include late-emerging LLAE from events in prior periods.”
Net written premiums rose $7.9 billion, or 3.6%, to $226.72 billion for first-half 2012 from $218.79 billion for first-half 2011.
For the second quarter, insurers' net income rose to $6.28 billion from a $3.07 billion loss during the same period a year earlier. The combined ratio improved to 105.3% from 117.6% during the second quarter of last year.
Net written premiums increased 4.2% to $114.34 billion.
The figures are consolidated estimates for all private property/casualty insurers based on reports accounting for at least 96% of all business written by private U.S. property/casualty insurers.
