Printer Friendly

PROPERTY/CASUALTY INDUSTRY POSTS STRONG SIX-MONTH FINANCIAL RESULTS

 OLDWICK, N.J., Sept. 20 /PRNewswire/ -- Property/casualty insurer's net income surged 24 percent to $9.5 billion for the first six months of 1993, according to a new study released today by the A.M. Best Company. Realized capital gains, along with stronger premium growth and moderating claims costs, contributed to the much-improved results.
 With catastrophe losses relatively light during the first half of the year, insurers' paid claims and claim reserves leveled off, rising only 1.8 percent from last year's figure. Premium growth for the period outstripped claims-cost growth by 1.3 percentage points. As a result, the industry's loss ratio declined to 80 for the six-month period, down one percentage point from a year ago. The combined ratio (after dividends) fell to 106.9 from 108.3 in 1992.
 Investment earnings continued to boost earnings as well. Although net investment income declined 4.4 percent to $16.1 billion, partially due to declining interest rates, this more than offset the industry's $9 billion underwriting loss and generated a pretax operating gain of $7.2 billion. Declining interest rates allowed insurers to realize $4.7 billion in capital gains during the first six months of 1993, up 45.5 percent from a year earlier.
 Other results posted by the industry include:
 -- Policyholders' surplus grew 6 percent to $172.4 billion at June 30, 1993, up 4.3 percentage points from a year ago. Capital contributions and net unrealized gains contributed to this growth;
 -- The industry's loss ratio fell to 78, while the combined ratio dropped to 105.6;
 -- Net premiums written grew 4.5 percent to $119.6 billion, a substantial rise since NPW increases didn't exceed 3 percent the past two years;
 -- Admitted assets for the industry rose 2.7 percent to $651.6 billion.
 The report also contains individual insurer's results.
 Reprints of this article may be obtained by contacting Laurie Wolf at 908-439-2200, ext. 5101. Media and reporters may contact Rhonda Ruch at the number below.
 -0- 9/20/93
 /CONTACT: Rhonda J. Ruch of A.M. Best Company, 908-439-2200, ext. 5684/


CO: ST: IN: INS SU: ECO

TS -- NY038 -- 3557 09/20/93 10:22 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 20, 1993
Words:363
Previous Article:STATE FARM MUTUAL TO RETURN $206 MILLION OF AUTO CUSTOMERS' PREMIUMS
Next Article:FIELD CONTAINER ACQUIRES ONE-THIRD INTEREST IN MARKETER OF BAKERY AND DELI PACKAGING
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters