A softening market and slippage in underwriting results prompted a 36.2 percent decline in property-casualty insurer 2007 fourth-quarter after-tax consolidated net income to $12.5 billion, as well as a drop of 5.8 percent to $61.9 billion for the full year, a report on industrywide results revealed.
Data released by Insurance Services Office and the Property Casualty Insurers Association of America also showed that the p-c sector's overall profitability, as measured by its rate of return on average policyholders' surplus for the year, dipped to 12.3 percent in 2007 from 14.4 percent the year before.
Net gains on underwriting fell 38.9 percent to $19 billion in 2007, down from $31.1 billion the year before, while the combined ratio edged up to 95.6 in 2007, from 92.4 in 2006.
Partially offsetting the decline in net gains on underwriting, insurers' net investment gains–the sum of net investment income and realized capital gains–climbed 13.9 percent to $63.6 billion last year.
Net written premiums fell for the first time in the survey's history–down 0.6 percent to $440.8 billion in 2007.
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For full details and commentary on 2007 results, see NU's "State of the Market" report next week!
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