U.S. Reinsurers' Q1 Net Income Soars as Underwriting Results Improve

A group of 19 U.S. reinsurers more than doubled its first-quarter net income in 2013 compared to the year before thanks in large part to a dramatic turnaround in net underwriting gains. 

The group, which collectively makes up the Reinsurance Association of America (RAA), reports Q1 2013 net income of $3.4 billion, compared to $1.5 billion a year ago. The RAA companies had a combined net underwriting gain in the quarter of $1.2 billion, compared to a net underwriting loss of $69.3 million in 2012’s first quarter.

Only 3 out of the 19 reinsurers -- Endurance Reinsurance Corp. of America, Partner Reinsurance Company and QBE North America -- reported net underwriting losses in 2013’s first quarter. By contrast, 10 of the reinsurers reported net underwriting losses for the same period a year ago.

Berkshire Hathaway’s National Indemnity Company posted the largest net underwriting gain at $570.5 million, followed by Swiss Reinsurance America Corp. at $195.2 million and Transatlantic Reinsurance Co./FairCo at $97.9 million.

National Indemnity also posted the highest net income in the quarter among the group at $1.4 billion. Berkley Insurance Co. was second at $1.1 billion, followed by Swiss Reinsurance America Corp. at $212.3 million.

The group’s combined ratio fell to 78.9 compared to 95.6 the year before. Swiss Reinsurance America Corp. posted the lowest combined ratio at 57.2, followed by National Indemnity at 59.2 and Berkley Insurance Co. at 76.3. 

QBE North America had the highest combined ratio at 112.1, followed by Partner Reinsurance Co. at 100.5 and Endurance Reinsurance Corp. of America at 98.8.