Weiss: P-C Net Doubled In First Nine Months Of ?03
NU Online News Service, March 9, 1:42 p.m. EST?U.S. property-casualty insurance companies earned $22.9 billion during the first nine months of 2003, up $12.1 billion, or 112 percent, compared with $10.8 billion profit reported during the same period in 2002, according to Weiss Ratings Inc.[@@]
The Jupiter, Fla.-based ratings agency observed that the p-c insurance sector's performance during the nine-month period was helped by a 76.5 percent improvement in underwriting results. Weiss said that by adhering to stricter underwriting standards and increasing premiums, the p-c sector cut its underwriting loss to $4 billion in the third quarter of 2003, compared with a $17.1 billion loss during the same period in 2002.
"Property and casualty insurers flourished due to higher premiums and increased investment gains over the past year," commented Melissa Gannon, vice president of Weiss Ratings. Ms. Gannon cautioned, however, that with policyholders beginning to see better renewal rates, the tide may now be changing, and that the true strength of the industry will be determined by its underwriting capabilities.
P-C insurers reporting the largest year-over-year increases in net income, according to Weiss, include Princeton, N.J.-based American Re-Insurance Co., whose third-quarter income for 2003 was $478.6 million, in contrast to a net loss of $1.62 billion one year ago. Farm Mutual Automobile Insurance in Bloomington, Ill., also saw its earnings improve, to $738.8 million during the 2003 third quarter compared with a net loss of $771.3 million one year ago.
Other good performers listed include Northbrook, Ill.-based Allstate Corporation, Columbia Insurance Company in Omaha, Neb., and Fireman's Fund Insurance Company in Novato, Calif. Zurich American Insurance Company in New York also made Weiss' most-improved list, with a significant improvement in its underwriting performance.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.