The property and casualty sector fared well for 2010; according to a report that was recently released. The financial report for the P/C industry gives the details for the sectors’ rate of return, underwriting, investment results, operating income, policyholder’ surplus and wrapping up with fourth quarter results.
The policyholder’s surplus was up to 6.5 percent giving them a 0.6 percent increase from the previous year. This resulted from negative return rates for insurers in mortgage and financial securities, as well as low returns for other insurers. Although insurers net income and rate of return showed increases, it was still lower than average.
Underwriting net losses grew by three billion dollars, raising their totals for 2010 up to 10.4 billion. Net for written premiums grew to over 422 billion, while net earned premiums fell by 0.4 percent. Expenses for loss and (loss) adjustment rose by near 3 billion; this figure includes reinsurance recoveries.
Other expenditures for underwriting rose by just more than two percent, with policyholder’s dividends rising to 2.3 billion. ISO’s Property Claim Service reported disasters hitting the U.S last year cost 13.8 billion in direct losses for all insurers. Private insurers were estimated to have 2.7 billion dollars (net) more in LLAE disaster losses than the previous year.
Net written premiums for the overall industry rose by near one percent, after three consecutive years of dropping. Net gains for investments rose by 35 percent, combining net investment income and capital gains securities sold or dispersed.
The industries overall net gain after taxes came to 34.7 billion dollars, and policyholder’s surplus increased to 556 billion dollars; rising over 45 billion from the previous year. According to ISO data, the 27 billion in funds paid last year were the largest increase since late 1959.