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P/C Industry On Track for Underwriting Profit for 2006

The U.S. property/casualty industry reported very strong operating results in the first nine months of 2006 according to A.M. Best, propelled by $23.7 billion in...
December 21, 2006

The U.S. property/casualty industry reported very strong operating results in the first nine months of 2006 according to A.M. Best, propelled by $23.7 billion in underwriting income. The industry's combined ratio, a key measure of underwriting profitability, improved to 91.9 percent in the first nine months of 2006 from 100.1 percent reported in the same period of 2005. Among the leading U.S. property/casualty insurers by net written premiums, 20 of the top 25 writers reported an improvement over their nine-month 2005 combined ratio.

Based on preliminary results, the industry's net premiums written increased 5.1 percent through the first nine months of 2006. With three quarters down and one to go, the U.S. property/casualty industry is on target for only its second underwriting profit since 1978. In addition, thanks to the mildest hurricane season in a decade, A.M. Best believes the industry is currently on track for posting its best combined ratio since it recorded a 93.1% in 1953.

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