Solid finish to 2007.

A strong fourth quarter capped another solid year for U.S. P/C insurers, but 2007 fell short of 2006's record year. Net premiums written fell almost 1% in '07, the first drop in NPW since 1943. The industry's combined net ratio was 94.9. (A.M. Best 2008 Special Report, P/C Insurers Post Strong Results, April 21, 2008)

U.S. Property/Casualty--Financial
Indicators 2007
($ Billions)
                                                      Year-to-Year
                                      2006     2007       % Change

Net Premiums Written                $449.8   $446.0          -0.9%
Net Premiums Earned                  441.1    444.5           0.8%
Pure Losses Incurred                 234.5    246.9           5.3%
Loss-Adjustment Expenses              53.0     52.9          -0.2%
  Losses & LAE                       287.5    299.8           4.3%
Underwriting Expenses                118.0    119.9           1.6%
Policyholder Dividends                 3.6      2.7         -23.6%
  Underwriting Income/(Loss)          32.0     22.1         -30.9%
Net Investment Income                 55.2     56.4           2.3%
Other Income                           2.6    (1.0)             --
  Pretax Operating Income/(Loss)      89.8     77.5         -13.7%
Realized Capital Gains                 3.5      8.8             --
Federal Income Taxes                  22.0     19.8          -9.7%
  Net Income                          71.3     66.5          -6.8%
Beginning Policyholder Surplus
(PHS) at Prior Year End              437.5    492.8          12.6%
Net Income                            71.3     66.5          -6.8%