US p&c reports positive results

The U.S. property and casualty insurance industry boasted profits of US$41.3 billion in 2004, a 28% increase over the US$32.3 billion earned in 2003, according to Weiss Ratings Inc.Weiss reports that the p&c insurers’ continue to report positive results and the independent provider of ratings and analyses adds that, in lieu of the intense hurricane season, these positive results exemplify the industry’s long-term financial strength. Underwriting profits also indicated outstanding results, reaching a record high of US$6.4 billion as of Dec. 31, 2004 compared to a loss of US$2.9 billion in the previous year. The underwriting gain was primarily due to an increase in earned premiums, which jumped from US$387.7 billion in 2003 to US$414.3 billion in 2004. Improved underwriting was also responsible for a US$51.5 billion, or 11.6%, increase in capital and surplus, which rose to $496.3 billion at Dec. 31, 2004. Improved underwriting led to the further decline of the industry’s loss ratio. The overall loss ratio fell to 59.8% for 2004 from 61.7% in 2003. The industry also improved its combined ratio to less than 98.9 in 2004, a 1.9 point improvement over 2003.