Property/Casualty Insurers' Net Income Down 50 Percent in First Quarter
6/25/2008 12:21:58 PM
The U.S. property/casualty insurance
industry’s net income after taxes fell to $8.2 billion in first quarter 2008
from $16.2 billion in first quarter 2007 and a cyclical peak of $17.7 billion
in first quarter 2005.
Reflecting the declines in net income, the
property/casualty industry’s annualized rate of return on average
policyholders’ surplus (statutory net worth) dropped to 6.4 percent in
first quarter 2008 from 13.2 percent in first quarter 2007 and 17.9 percent in
first quarter 2005, according to ISO and the Property Casualty Insurers
Association of America (PCI).
PCI is composed of
more than 1,000 member companies, representing the broadest cross-section of
insurers of any national trade association. PCI members write over $194
billion in annual premium, 40.1 percent of the nation’s property/casualty
insurance. Member companies write 51.3 percent of the U.S. automobile
insurance market, 39 percent of the homeowners market, 32.1 percent of the
commercial property and liability market, and 38.7 percent of the private
workers compensation market.