WEISS RATINGS REPORTS P&C LOSSES

The nation’s property and casualty insurers reported a $9 billion loss in 2001, compared to a $27 billion profit in 2000, according to research by Weiss Ratings Inc. By year-end, claims surged to a record $381 billion, an increase of $175 billion, or 86 percent, over the $205 billion in claims reported in 2000. The loss, the first ever for the industry, reflects not only catastrophic losses from the Sept. 11 attacks but also a general increase in claims across a majority of lines of business. Although the losses were very large, they were concentrated among 905 insurers, a mere 34.1 percent of the 2,653 companies analyzed. Moreover, just three large insurers, each suffering losses in excess of $1 billion, accounted for an unusually large 59 percent of the total $9 billion in red ink. The three companies reporting the largest losses for the year were: State Farm Mutual Auto Insurance Co., General Reinsurance Corp., and State Farm Fire and Casualty Co. Among the 2,653 property and casualty insurers reviewed by Weiss using year-end 2001 data, 89 were upgraded, while 325 were downgraded. Notable upgrades include: Allstate Ins. Co., Ill. from “B+” to “A-;” Dairyland Ins. Co, Wis. from “B+” to “A-” and Travelers Indemnity Co., Conn. from “B-” to “B.” Notable downgrades include: Liberty Mutual Ins. Co., Mass. from “B+” to “B;” State Farm Mutual Auto. Ins. Co., Ill. from “A” to “A-;” and St. Paul Fire and Marine, Minn. from “B+” to “B.”

Topics Profit Loss Property Casualty