Net Premiums Down, Policyholder Surplus Up For U.S. Reinsurers

NU Online News Service, March  14, 2:41 p.m. EST

Net premiums among 19 U.S. property and casualty reinsurers fell about $600 million in 2010, according to the Reinsurance Association of America (RAA).

A survey of these companies by the U.S. reinsurance trade association found the group wrote $23.3 billion in net premiums in 2010 compared to $23.9 billion in 2009.

Policyholder surplus in 2010 increased to $108.3 billion, up from $103.9 billion the year before, Washington-based RAA said.

The combined ratio among these reinsurers was 95.4, worse than the 93.5 ratio posted the year prior. Broken down the combined ratio in 2010 was due to a 64.2 loss ratio and an expense ratio of 31.3.

National Indemnity Company posted net premiums written of $3.9 billion in 2010, down from about $4.4 billion in 2009. The company also saw a year-to-year jump in combined ratio to 87.1 from 78.2. Results exclude assumptions from affiliated General Re Group, which saw a decrease in net premiums written to $1.3 billion in 2010 from $1.4 billion in 2009, according to the RAA underwriting report.

American Agricultural Insurance Company and QBE Reinsurance Group, New York recorded net income losses for 2010 of about $3.1 million and $2.4 million, respectively. American Agricultural was the only reinsurer of the 19 to post a loss in 2009 of $36.5 million.

Among the group, net income increased $4.8 billion to $9.1 billion in 2010.