Weiss: U.S. P-C Profit Up 189% in ?03 First Half
NU Online News Service, Dec. 4, 12:30 p.m. EST?U.S. property-casualty insurance companies earned $15.6 billion during the first six months of 2003, up $10.2 billion, or 188.9 percent, compared to the same period one year ago, according to Weiss Ratings Inc.[@@]
The Jupiter, Fla.-based ratings agency added that in the second quarter this year, p-c insurers were also able to lower their underwriting loss to $2 billion?down from the $11.3 billion loss reported a year ago?thanks to improved underwriting.
And with the economy recovering and the upswing in stock markets, insurers' realized capital gains jumped to $4.4 billion during the 2003 first half. This reversed a $0.5 billion loss reported during the same period in 2002.
Weiss also said that industry-wide, cash-flow jumped 66 percent to $29.9 billion for the 2003 first half, compared to $18 billion one year ago. Contributing to the rise in cash flow, the ratings agency said, was $194.6 billion in net premiums for the first six months of 2003?up $20.2 billion, or 11.6 percent, compared to the year-ago period.
Companies with the biggest improvements this year, according to Weiss, include Princeton, N.J.-based American Re-Insurance Co., whose second-quarter income this year was $427.9 million, compared to a net loss of $1.65 billion one year ago.
Other winners include Columbus, Ohio-based Fire & Marine Ins. Co, which posted second-quarter profit of $454.1 million, compared to a loss of $53.7 million last year; and Allstate Ins. Co. in Northbrook, Ill., which posted second quarter net income of $1.17 billion, up from $678.9 million last year.
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