The U.S. insurance industry has shown “resilience” in the wake of the financial crisis, according to a report issued Wednesday by the Federal Insurance Office.

FIO is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act to present the White House and Congress with an annual report on the state of the insurance industry.

In its second annual report, FIO noted that both the life and health insurance sector and the property/casualty sector have enjoyed growth in recent years.

“U.S. insurers continued to show resilience in the aftermath of the financial crisis,” said the report. “Property and casualty insurance sector premiums have grown consistently since 2010 and reached a record high of $471 billion on a net earned basis in 2013,” according to the report. “The P/C sector’s combined ratio for 2013 dropped below 100% for the first time since 2007, which was largely attributable to a reduction in catastrophe losses.”

The FIO report noted, however, that as with life and health insurers, property/casualty insurers’ investment yields continued to decline and that, unlike the life and health sector, its investment income declined as well.

“Nonetheless, net income of $72 billion in 2013 was the highest level for the P/C sector since 2007, which drove surplus to a record level of $665 billion,” said the report

The report also noted that U.S. secretary of the Treasury, under whose jurisdiction FIO rests, is to work with the United States trade representative to negotiate and enter into a “covered agreement” with one or more foreign governments, authorities, or regulatory entities regarding “prudential measures with respect to the business of insurance or reinsurance.”

The report says that accordingly, Treasury and the U.S. trade representative are engaged internally regarding the FIO’s recommendation in its late “2013 Modernization Report” to reform reinsurance collateral rules through a covered agreement based on the amended National Association of Insurance Commissioners’ Model Reinsurance Collateral Law.

Early industry reaction was favorable.

“Our initial review of the report is that it’s valuable, accurate, balanced and has just the right pitch — evidence again that the creation of this office was a very good thing,” Joel Wood, senior vice president of the Washington-based Council of Insurance Agents & Brokers, said in an email. “We’re grateful for the incredible amount of work that has gone into making this a seminal document on which progress — or the lack thereof — toward regulatory modernization can be measured.”

The report is available here.