Property and casualty insurers saw their first-half net income climb collectively by over 245 percent in 2012 compared to the prior year, as the industry benefited from premium growth and a sharp drop in catastrophe losses, but experts offered mixed opinions on the larger meaning of the figures.
“While insurers' overall results for first-half 2012 are certainly much better than their results for first-half 2011, insurers' overall rate of return remains subpar compared with long-term historical norms, and insurers now need much better underwriting results just to be as profitable as they were in the past,” says Michael R. Murray, ISO's assistant vice president for financial analysis.
ISO, the Property Casualty Insurers Association of America and the Insurance Information Institute released figures on the industry's first-half performance, finding that net income for the period was $16.4 billion, compared to $4.8 billion a year ago.
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