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A.M. Best: P&C Net Income Plummets

Source: A.M. Best

Posted on 30 May 2012 by Neilson

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The U.S. property/casualty industry suffered twice the losses in 2011 as the year prior, due to weather-related and catastrophic events. This combined with increased losses in non-catastrophe-exposed lines produced an underwriting loss of $30 billion, or almost six times the 2010 level, according to a special report by A.M. Best Co.

Other factors have contributed to the industry's plummeting net income, including weak macroeconomic conditions, low investment yields, volatile equity markets and a reduced level of favorable loss reserve development after considering a single large reserve action in 2010, the report said.

Partially offsetting those losses and increased expenses are a growth in net premiums earned and increases in net premiums written, which increased for the second year.