You are here:HomeNews CenterInsurance News2007Industry Posts Best Underwriting Performance Since 1948

Industry Posts Best Underwriting Performance Since 1948

Driven by a sharp decline in catastrophe losses from hurricanes and other natural disasters, the U.S.property/casualty industry's underwriting performance excelled in 2006 as its combined...
April 24, 2007

Driven by a sharp decline in catastrophe losses from hurricanes and other natural disasters, the U.S.property/casualty industry's underwriting performance excelled in 2006 as its combined ratio improved to 92.4, its best performance since the 91.2 recorded 58 years earlier in 1948. The net gain on underwriting in 2006 stands in stark contrast to the $5.6 billion net loss on underwriting in 2005. 

The industry's positive underwriting results contributed to an increase in its net income after taxes to $63.7 billion in 2006 from $44.2 billion in 2005.  Reflecting the increase in net income after taxes, the industry's rate of return on average policyholders' surplus (net worth) rose to 14 percent in 2006 from 10.8 percent in 2005. 

The figures are consolidated estimates for all private property/casualty insurers based on reports accounting for at least 96 percent of all business written by private U.S. property/casualty insurers.  Concerning catastrophe losses, ISO's Property Claim Services (PCS) unit reports that direct insured losses from catastrophes dropped to $9.2 billion in 2006 from $61.9 billion in 2005.

The full report can be accessed here. 

Filed under: