P-C Insurers Easily Weather Storm Losses: Weiss
NU Online News Service, Dec. 8, 3:22 p.m. EST?Despite nearly $21 billion of hurricane-related losses expected in their third- and fourth-quarter results, U.S. property and casualty insurers are still well-capitalized enough to recover without much difficulty, according to a ratings firm.[@@]
Weiss Ratings observed in its new report that the p-c industry posted "impressive performance numbers" during the second quarter of 2004, with a $9.2 billion net underwriting gain, representing a 560 percent jump over the $2 billion underwriting loss reported for the same time in 2003.
The ratings firm also pointed out that thanks to another solid underwriting performance by the industry, p-c insurers' earnings also climbed, jumping to $24 billion by June 30, a 53.8 percent increase over the $15.6 billion earned in the first six months of 2003.
Weiss Ratings Vice President Melissa Gannon said that while hurricane losses will materially impact the industry's profits, "very few insurers" are expected to have problems meeting the needs of policyholders.
Weiss also observed that the p-c industry's strong performance has also led to a $71.9 billion?18 percent?increase in capital and surplus, which surged from $398.6 billion on June 30, 2003 to $470.5 billion on June 30, 2004.
"The substantial growth in capital and surplus is another indicator that the industry can withstand the hurricane losses of this past summer," Ms. Gannon commented.
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