P/C Industry Net Income Slips in First-Quarter ‘07
According to a report by ISO and the Property Casualty Insurers Association of America (PCI), the U.S. Property/Casualty insurance industry’s after-tax net income dropped 5.5% to $15.81 billion during the first quarter of 2007 compared with last year’s first quarter of $16.7 billion.
“The financial performance of the P/C insurance industry during the first quarter of 2007 was generally excellent, but at the same time provided confirmation that the industry is now past its cyclical peak in profitability of 14% achieved in 2006,” said Robert P. Hartwig, president and chief economist at the New York-based Insurance Information Institute, in a commentary on the report.
The only question that now remains is how long the decline in profitability will last and how many years it will take to get to the bottom,” said Mr. Hartwig. Among other results, net premiums written increased 0.8%, to $111.42 billion, while the combined ratio increased to 91.7% from 91.1%.
For more findings from the ISO and PCI report, visit: http://www.iso.com/index.php?option=com_content&task=view&id=2521.
Published on June 29, 2007
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