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Daily Insurance Industry News
Thursday 18th of January 2018
December 19, 2008

Income down 92% for US P&C insurers

by David Masters

Story link: Income down 92% for US P&C insurers

US property and casualty (P&C) insurers have reported a 91.8% fall in net income for the nine months ending 30th September 2008.

Net income for the period was $4.1 billion, down from $49.6 billion in the same period last year.

Overall profitability in the industry dropped to 1.1% for the nine month period, compared to 13.1% in the first nine months of 2007.

Combined ratio worsened to 98.1%, compared to 90% for the same period last year.

The industry posted a $19.9 billion underwriting loss for the period, which excludes investment results. This is compared to an $18.4 billion underwriting gain in the first nine months of 2007.

The fall in income is a result of $9.7 billion realised investment losses, increased competition, declining commercial insurance rates, and a weakening US economy.

Catastrophe claims were responsible for an estimated $21.6 billion losses during the period, a consequence of hurricanes and other disasters.

Despite the drop in income, rates are not expected to rise dramatically next year.

 

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