US P&C Net Worth Continues to Decline

Thursday, August 28th, 2003 Liability

While strong underwriting results propelled the property/casualty insurance industry to profitability in 2002, insurers have not fully recovered from anemic premium growth of the 1990s and Sept. 11 losses, according to a just-published study by Insurance Services Office, Inc. (ISO). Despite posting the largest premium increase since 1986, the industry‘s surplus last year fell $4.4 billion, or 1.5 percent, to $285.2 billion from $289.6 billion in the prior year — largely driven by capital losses in the stock market (see graph below.) The study, Insurer Financial Results: 2002, further reveals the decline in industry surplus occurred even as investors paid in a record $17.3 billion in new funds.

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http://www.namic.org/topnews/030827st1.asp

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