A group of 18 reinsurers belonging to the Reinsurance Association of America reported a combined 2013 first-half net income of just under $4.8 billion, up from $3.6 billion for the same companies a year ago, as improved underwriting income more than offset a slight drop in net premiums written.
Similar to 2012's first half, Berkshire Hathaway's National Indemnity Co. accounted for over half of the group's net income in the first six months of this year. National Indemnity reported just under $3 billion in first-half net income, far outpacing Transatlantic Reinsurance, which placed second among the group with $364.4 million in net income.
All 18 companies posted positive net income for the half-year, an improvement over 2012's first half when two in the group, American Agricultural Insurance Co. and Odyssey Reinsurance Group, posted net losses.
Fourteen of the companies recorded underwriting gains in the period, up from 11 during 2012's first half. National Indemnity led the way in 2013 with $924.8 million in underwriting gains. Swiss Reinsurance America Corp. placed second ($226.3 million), followed by Odyssey Reinsurance Group ($176.9 million) and Transatlantic Reinsurance ($155.6 million).
Axis Reinsurance Co., Endurance Reinsurance Corp. of America, Partner Reinsurance Co. and QBE North America posted underwriting losses for 2013's first half.
All but 4 of the 18 companies managed combined ratios under 100 for the period, an improvement compared to 2012's first half when eight of the companies posted combined ratios over 100. National Indemnity recorded the lowest combined ratio at 66.2, followed by Swiss Reinsurance America Corp. (68.2), EMC Reinsurance Co. (78.7) and Odyssey Reinsurance Group (83.3).
SCOR U.S. Group/SCOR Re recorded the highest combined ratio during the period (106.4), followed by Partner Reinsurance Co. (102.5), QBE North America (102.2) and Endurance Reinsurance Corp. of America (100.3).
The 18 companies together posted a combined ratio of 86, and improvement from 91.2 in 2012's first half.
Net written premium for the companies declined slightly during the period to $13.4 billion from $13.8 billion a year ago.
In 2012's first half, RAA's report included 19 reinsurers. An RAA spokesman says Berkley Insurance Co. did not contribute data for the period this year. Berkley's 2012 first-half figures were therefore excluded in the 2012-to-2013 comparisons.
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