Monday, October 10, 2011

ISO Reports U.S. Insurers' Net Income Down 71%

No, the sky is not falling on the soft market
conditions however...objects in the mirror are
closer than they appear...


On September 30th, A.M Best reported that the U.S. property/casualty insurance industry’s net income fell 67% to $6.9 billion during the first six months of this year compared with the same period a year earlier. They also reported that the industry’s combined ratio deteriorated more than 9 percentage points to 109.6%, according to the report. Now it is ISO's turn...


Property Casualty 360
By Mark Ruquet
October 10, 2011

The first-half results for property and casualty insurers are in and the results are not very pretty, as the industry reported more than a 71 percent drop in net income.

In a report issued by the Jersey City, N.J.-based Insurance Services Office (ISO), the Des Plaines, Ill.-based Property Casualty Insurers Association of America (PCI) and the New York-based Insurance Information Institute (I.I.I.), private U.S. P&C insurers’ net income fell to $4.8 billion for the first half of 2011 compared to $16.8 billion for the same period a year ago.

Driving the decline were net losses on underwriting, growing $19 billion to more than $24 billion for the first half of the year.

The total combined ratio for the carriers deteriorated 8.8 points to 110.5 for the first half of the year.Complete Article

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