The U.S. property/casualty industry's net income after taxes fell to $8.2 billion in first-quarter 2008 from $16.2 billion in first-quarter 2007, according to the ISO and Property Casualty Insurers Association of America. The P/C industry's annualized rate of return on average policyholders' surplus dropped to 6.4 percent from 13.2 percent in first-quarter 2007.

Net-written premiums fell to $110.5 billion from $111.3 billion in first-quarter 2007, with the 0.7 percent decline in written premiums in first-quarter 2008 contrasting with a 0.8 percent increase in first-quarter 2007. Net-earned premiums dropped to $107.9 billion in first-quarter 2008 from $108.5 billion in first-quarter 2007, with the 0.6 percent decline in earned premiums contrasting with the 1.9 increase in the first three months of 2007.

Insurers' overall net investment gains dropped to $12.2 billion, compared to $15 billion in 2007. Net investment income fell 2.1 percent. Realized capital losses on investments totaled $0.5 billion, a $2.6 adverse swing from the $2.1 billion in first-quarter 2007. Combining the realized capital losses with the $9.9 billion in unrealized capital losses during the period, insurers posted $10.4 billion in overall capital losses.