U.S. Reinsurers Post $26.4B in Net Premiums for 2008

July 21, 2009

For 2008, the U.S. reinsurers reported net premiums written of $26.4 billion, premiums earned of $25.9 billion, according to the Reinsurance Association of America’s “Reinsurance Underwriting Review: 2008 Industry Results.”

The report includes industry aggregate data and summarizes underwriting experience, operating results, ceded reinsurance and recoverables, reserve development and leverage, and the invested assets of 36 organization.

The report also showed loss and loss adjustment expenses for U.S. reinsurers at $18.2 billion, commission and broker expenses of $5.4 billion, and other underwriting expenses of $2.6 billion.

The figures indicate a weighted loss ratio of 70.3 percent, commission and broker ratio of 20.3 percent, and other underwriting expense ratio of 9.7 percent, resulting in a combined ratio of 100.4 percent.

As a group, the reinsurance companies reported policyholders’ surplus of $69.0 billion. This same group of reinsurers reported a return on equity of 3.9 percent, an investment yield of 3.8 percent, net-net reinsurance exposure that was 9.9 percent of surplus and net leverage of 198.1 percent.

The RAA has reported the underwriting results of the nation’s major property/casualty reinsurers in its annual Reinsurance Underwriting Review since 1980.

Source: RAA,
www.reinsurance.org

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