RAA reports US$72.8 billion policyholder surplus

The Reinsurance Association of America (RAA) reported a policyholder surplus of US$72.8 billion for a group of 20 U.S. property and casualty reinsurers for the first six months of 2008.This compares to a US$77.3 billion surplus for the same period in 2007.Net income for the reinsurers for the first six months of this year was US$2.7 billion. The group wrote US$12.7 billion of net premiums in the first six months of 2008, compared to US$12.2 billion through the first half of 2007. In 2008, the group experienced a net underwriting gain of US$41 million. Through June 30, 2008, the combined ratio for the group was 97.5%, deteriorating from the 90.0% combined ratio for the same period in 2007, the RAA reports.The combined ratio is attributable to a 68.0% loss ratio and an expense ratio of 29.5%. For the same period in 2007, the loss ratio was 62.8% and the expense ratio was 27.2%.XL Reinsurance America posted the lowest loss ratio at 60.3%, while White Mountains Reinsurance Company of America posted the highest with a ratio of 120%.