Property/casualty net premiums, income grow in first half of 2014

Net premiums grew, but combined ratio worsened among property/casualty insurers during the first half of 2014, according to the mid-year survey by Insurance Services Office Inc. and the Insurance Information Institute Inc., ISO said in a statement Monday.

First-half net written premiums rose 4.0% to $246.4 billion while net investment income earned fell 1.3% to $22.9 billion.

Net income for the first half rose 6.4% to $25.9 billion while the industry's combined ratio rose slightly to 98.9% from 98.0% in the same period last year.

The increase in insurers' net income after taxes is the net result of a decline in pretax operating income, an increase in realized capital gains on investments (not included in operating income), and a small reduction in federal and foreign income taxes, the statement said.

The policyholders' surplus grew 2.8% from the end of 2013 to $671.6 billion as of June 30, 2014.

“The $18.2 billion increase in policyholders' surplus to a record-high $671.6 billion at June 30, 2014, is a testament to the strength and safety of insurers' commitment to policyholders,” Robert Gordon, Property Casualty Insurers Association of America's senior vice president for policy development and research, said in the statement.

For the second quarter, net premiums written rose 4.2% to $124.9 billion while net investment income fell 0.2% to $11.8 billion.

Net income rose 19.6% to $12.1 billion while the second quarter combined ratio improved to 100.6%.