U.S. reinsurers report growth in 2009 net income: RAA

A group of 19 US property and casualty reinsurers wrote $23.9 billion of net premiums in 2009 — flat compared to the prior year — according to a survey by the Reinsurance Association of America (RAA). Net income for the group increased in 2009 to $4.3 billion from $2.9 billion in 2008. In 2008 six companies reported a net loss, last year only one firm, American Agricultural Insurance Company, reported a net loss.The combined ratio for the group was 93.5%, marking an improvement from the 101.8% repoted in 2008, the RAA reported. The combined ratio is attributable to a 63.3% loss ratio and an expense ratio of 30.2 %, it added. The loss ratio in 2008 was 71% and the expense ratio was 30.7%. Gross premiums written for the group totalled $35.6 billion for 2009, a slight decrease from the $36.2 billion reported in 2008. This year, six companies posted a net underwriting loss, with the American Agricultural Insurance Company posting the highest loss at $79 million, followed closely by XL Reinsurance America at a loss of $78 million. Last year, 13 companies reported a net underwriting loss, with Munich Re posting the highest loss at $364 million.