U.S. property/casualty reinsurers' combined ratio worsens to 108.8%: RAA

U.S. property/casualty reinsurers' combined ratio worsened to 108.8% during the first nine months of this year compared with 96.6% during the same period last year, according to a survey of 19 U.S. reinsurers released Monday by the Reinsurance Assn. of America.

The combined ratio in the first three quarters is attributable to a 79.8% loss ratio and an expense ratio of 29%, the Washington-based trade group said.

Reinsurers have experienced substantial losses due to a series of catastrophes so far this year, particularly in the first half.

The 19 reinsurers wrote more than $20.5 billion in net premiums during the first three quarters, a 12.3% increase compared with the same period of 2010, the RAA said in a statement.

Policyholder surplus fell to $104.9 billion during the nine-month period from $107.5 billion at the end of the first half, but remained higher than the $103.9 billion during the first nine months of 2010.

The 19 participating reinsurers' net income sank 29.7% year over year to $4.4 billion during the first nine months of 2011.