# Reinsurers See Combined Ratios Soar 

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Figures released last week by the Reinsurance Association of America reflect the devastating effect of World Trade Center losses on U.S. reinsurers, with the industry's combined ratio through three quarters soaring to 139.5.

The RAA said the combined ratio reported by a group of 30 U.S. property-casualty reinsurers for this year so far compares with a figure of 112.2 reported by a similar group of reinsurers through the third quarter of 2000. The 2001 ratio is attributable to a 109.5 loss ratio and a 30.0 expense ratio, the Washington-based RAA said.

Don Watson, director of insurance ratings at S&P in New York, said the industry's loss ratio for the third quarter would prove to be the worst ever reported by the industry for a single quarter. "It will surpass the loss ratios reported for Hurricane Andrew and Hurricane Iniki in 1992," he said.

Sources:
- National Underwriter (http://www.nationalunderwriter.com/archives/Pc_archive/2001/P12-03/P200149us_reinsurers.asp)