The property-casualty insurance industry suffered its first ever full-year net loss last year--$7.9 billion after taxes.
The figure compared to $20.6 billion of net income in 2000, according to figures released today by the Insurance Services Office in Jersey City, N.J., and the Des Plaines, Ill.-based National Association of Independent Insurers.
The industry‘s net worth—statutory surplus—also fell 8.7 percent to $289.6 billion at year-end 2001 from $317.4 billion at year-end 2000.
The drop put the industry surplus figure below $300 billion for the first time since 1996, according to historical reports previously released by ISO.
The ISO/NAII figures show that both severe underwriting losses and lower investment gains contributed to the negative earnings picture for p-c insurers.
