Insurance News

Property-Casualty Hit Hard

Posted on: May 10, 2009

Net income of U.S. property-and-casualty insurers fell 96% last year amid surging investment losses.

But the industry remains well-capitalized despite the earnings hit and the effects of catastrophes and the recession, the Property Casualty Insurers Association of America said, citing research it compiled with insurance-advisory firm ISO.

The profit for the companies, which include publicly held and mutual companies but exclude entities such as state funds like Florida’s Citizens Property Insurance Corp., would have been the lowest in more than two decades if not for the 2001 loss resulting from Sept. 11 terrorist attacks.

Net income for the property/casualty insurance industry after taxes last year was $2.4 billion, compared with $62.5 billion in 2007.

The firms finished the year with more than $1 trillion available to pay claims, the association said.

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