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ISO Reports P/C Industry Net Profits Up 81.9 Percent in 2013

Profitability in the property/casualty insurance industry surged to its highest level in the post-crisis era in 2013 as sharply lower catastrophe losses, modestly higher premium growth, improved realized investment gains and favorable prior-year reserve loss development coalesced to push the industry’s return on average surplus to 10.3 percent, up from 6.1 percent in 2012 and just 3.5 percent in 2011...
April 29, 2014

Profitability in the property/casualty insurance industry surged to its highest level in the post-crisis era in 2013 as sharply lower catastrophe losses, modestly higher premium growth, improved realized investment gains and favorable prior-year reserve loss development coalesced to push the industry’s return on average surplus to 10.3 percent, up from 6.1 percent in 2012 and just 3.5 percent in 2011.

The effect: the industry combined ratio in 2013 fell to 96.1, down from 102.9 in 2012, leading to an underwriting profit of $15.5 billion. The industry’s bottom line benefited commensurately as overall net income after taxes (profits) for the year surged by 81.9 percent to $63.8 billion from $35.1 billion a year earlier. The Insurance Information Institute (I.I.I.) has full details on the P/C industry’s year-end figures, compiled and reported by the Insurance Services Office (ISO).

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