Third-Quarter Net Income Improves for P&C Industry

Net income for P&C insurers in the United States more than doubled during the first three quarters of 2012, increasing to $31.2 billion from $12.3 billion for the same period last year, as a result of improved underwriting results, according to “U.S. P/C Net Income Improves in 3rd Qtr; Sandy’s Impact Yet to be Realized,” a special report from an A.M. Best Co. The impact of superstorm Sandy, which hit the East Coast of the United States in October, has not yet been fully calculated and will negatively affect financial results for Q4 and for 2012. However the industry is well-capitalized, A.M. Best said, and “should result in Sandy having only a modest impact next quarter.” Last week, Fitch released similar findings.