First-Ever Net P/C Loss in 2001
Thursday, April 25th, 2002 Liability PropertyThe events of Sept. 11 and declines in interest rates and the stock market all contributed to make 2001 the worst year ever for the property/casualty industry, according to just released numbers from Insurance Services Office Inc. (ISO) and the National Association of Independent Insurers (NAII). The industry was hit with a $7.9 billion net loss after taxes for the year, a dramatic change of events from the previous year, when it recorded $20.6 billion in net income. P/C's statutory surplus, or net worth, dropped $27.7 billion, or 8.7 percent to $289.6 billion for the year-end 2001 from $317.4 billion at year-end 2000. The industry's net loss on underwriting following policyholder dividends jumped dramatically to $53 billion last year, an increase of nearly 70 percent from $31.2 billion in 2000.
