US P/C INSURERS’ NINE-MONTH INCOME JUMPS 55%

The US p/c sector’s net income for the first nine months of 2013 rose 55% to $43.03bn, largely owing to a swing to $10.49bn in net underwriting income from a loss of $6.18bn, according to figures compiled by Verisk Analytics’ ISO unit and the Property Casualty Insurers Association of America (PCI). The combined ratio for the nine months improved to 95.8% from 100.7%, as earned premiums increased by 4% to $348.27bn and incurred losses fell 3% to $235.56bn. Results were also lifted by a 5.4% increase in net investment gains (including earned investment income and realized gains) to $40.38bn. Policyholders' surplus grew by 8.5% during the period to $624.4bn. ISO assistant vice-president Michael Murray said that the US p/c sector posted its highest nine-month annualized rate of return (9.5%) and best combined ratio since 2007. “Further analysis reveals that relatively benign weather, a sharp drop in US catastrophe losses and special development affecting the mortgage and financial guaranty insurance segment account for much of the improvement in insurers’ results”, he said. For Q3, the sector saw net income rise 75% to $15.52bn, as earned premiums climbed 3.5% to $119.88bn and incurred losses declined 6.1% to $77.60bn. Underwriting income jumped to $8.20bn from $236m and the combined ratio improved to 91.8% from 98.5%.