The 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.
