Insurers‘ Results Slightly Improved

The U.S. Property/Casualty industry outlook is improving, but not dramatically, according to Conning Research and Consulting, Inc. Premium growth is significant, but income and return on equity are projected to improve only modestly over the next two years. Conning‘s assessment is provided in its recently released third quarter "Property-Casualty Forecast & Analysis by Line of Insurance". The update provides final industry results for 2001, forecast updates for 2002 and 2003 and Conning‘s initial forecast for 2004. "Conning expects strong premium growth in 2002 with continued but lesser growth in 2003 and 2004, which we expect will result in combined ratio improvement," Jack Gohsler, a senior vice president at Conning, said. "While underwriting improvement is expected, investment returns are likely to remain depressed.