Reinsurance

Some people are so frustrated that state lawmakers have been unwilling to make major changes to Citizens Property Insurance Corp. that they want legislators to consider privatizing part of the company. Will that cause a storm of controversy?

Arch Capital Group Ltd.s 2011 second-quarter net income dropped more than 61 percent compared to the same period a year ago as catastrophes caused $95 million in losses for the Bermuda-based specialty insurer and reinsurer.

W.R. Berkley Corp. says second-quarter net income fell about 25 percent as catastrophes during the period more than doubled compared to last year.

The property and casualty industry’s figures may not be as bad as some believe, and because of that a change in the soft-market direction may be delayed until the beginning of 2013, says an industry consultant.

While property and casualty insurers have benefitted from favorable loss-reserve development in recent years, a Keefe, Bruyette & Woods analysis contends that accident years 2008 to 2010 are underreserved and that adverse development will result in the future.

Two-thirds of the top 100 insurance groups saw net premiums written increase in 2010, but combined ratios worsened for just about as many, according to the latest midsummer NU’S Top 100 P&C Ranking. NU looks past $17 billion in reserve takedowns for the industry, a $5 billion boost for Chartis,...