Insurers continued to make an underwriting profit last year, but their overall combined ratio inched up two points over 2006, according to Highline Data's first compilation of 2007 property-casualty insurance industry data.

According to initial, unconsolidated regulatory filings published online in Highline Data's Insurance Analyst PRO database, the net industry combined ratio for 2007 was roughly 94, compared to 92 in 2006.

Highline Data is the data affiliate of Summit Business Media, the parent company of National Underwriter's Online News Service.

The 2007 combined ratio result is based on annual statement data filed with the National Association of Insurance Commissioners for 2,434 individual companies, or 84 percent of the companies expected to file for 2007.

According to Highline Data, the figure includes results for 98 of the top 100 filers (based on net earned premiums).

Should the combined ratio hold up at this initial level once all companies have filed and results are tallied, it would mean there was almost no deterioration in underwriting results that during the fourth quarter.

The nine-month 2007 industry combined ratio reported by Jersey City, N.J.-based Insurance Services Offices on Dec. 19 last year was 93.8.

Highline also reported that net earned premiums grew by 1 percent to $427 billion from $423 billion. That was a slowdown from the 5 percent increase that Highline reported in 2006.

For 2007, Highline Data also reported that unconsolidated surplus grew 7 percent to $626 billion, and unconsolidated net income fell 1 percent to $69.6 billion from $70.3 billion in 2006.

A comparison of unconsolidated income and surplus figures (basically the sum of net income and surplus figures for 2006 and 2005 for all the individual insurance companies in the Highline database) gives an early indication of how overall industry figures changed last year.

However, the sum for the 2,434 companies reporting so far for 2006 is only a proxy for aggregate net income and surplus that will ultimately be reported for the industry.

The true dollar figure for industry aggregate net income, for example, will take into account intercompany transactions and investments in affiliates, and therefore should be lower when it is ultimately reported by Highline Data in June.

According to Highline Data, the top three lines of business based on direct premiums written were private passenger auto liability, auto physical damage and homeowners. Highline reported that direct premiums declined for all three, with homeowners falling the most--3.8 percent to $61 billion.

Turning to the auto lines, the decrease for private passenger liability was 0.7 percent, with direct premium dollars falling to $92 billion in 2007. Direct premiums for auto physical damage fell 0.4 percent for to $71 billion.

Highline Data said that its release of annual statutory data today marked its earliest release of the complete data set and the industry's first look at the overall performance of the property and casualty insurance sector in 2007.

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