The U.S. property/casualty industry posted a $24.4 billion net gain on underwriting through nine months as a result of the decline in catastrophe losses in 2006. The figure stands in stark contrast to the $2.5 billion net loss on underwriting through nine-months 2005.

The industry's positive underwriting results contributed to an increase in net income after taxes to $44.9 billion in nine-months 2006 from $29.7 billion in nine-months 2005. According to ISO and the Property Casualty Insurers Association of America, the industry's annualized rate of return on average policyholders' net worth rose to 13.4 percent in nine-months 2006 from 9.8 percent in nine-months 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.

“Allowing for losses from Katrina and Rita that didn't emerge until after insurers closed their books for nine-months 2005 and factoring out losses covered by residual market insurers, ISO estimates the catastrophe losses included in private U.S. insurers' net financial results declined by $17.3 billion to $10.1 billion in nine-months 2006 from $27.5 billion in nine-months 2005,” said Michael R. Murray, ISO assistant vice president for financial analysis.