Driven by a sharp decline in catastrophe losses from hurricanes and other natural disasters in 2006, the U.S. property/casualty industry posted a $31.2bn net gain on underwriting for the year.
The net gain on underwriting in 2006 stands in stark contrast to the $5.6bn net loss on underwriting in 2005.
The industry's positive underwriting results contributed to an increase in its net income after taxes to $63.7bn in 2006 from $44.2bn in 2005. Reflecting the increase in net income after taxes, the industry's rate of return on average policyholders' surplus (net worth) rose to 14 % in 2006 from 10.8 % in 2005, according to the Insurance Services Office and the Property Casualty Insurers Association of America.
Government data and market surveys indicate the improvement in insurers' financial results has led to increased competition in many insurance markets.
The figures are consolidated estimates for all private property/casualty insurers based on reports accounting for at least 96 % of all business written by private U.S. property/casualty insurers.
