Property casualty insurers had a healthy growth level in after-tax profits, which stood at $26.7 billion through the first nine months of 2010, according to a release by the Property Casualty Insurers Association of America (PCI), Insurance Information Institute (III) and the Insurance Services Office (ISO).
Those after-tax margins were up $10.3 billion from the $16.4 billion in after-tax profits the property casualty insurers saw in the first three months of 2009.
The groups also said that insurers’ annualized rate of return on average policyholders’ surplus — a key measure of overall profitability — increased to 6.7 percent from 4.6 percent.
For the third quarter, net income after taxes fell to $10.1 billion, down 3.2 percent from the $10.5 billion in after-tax profits insurers saw in the third quarter of 2009.
Investment gains help increase profits in 2010. Insurers saw investment gains of $39.5 billion in the first three quarters of the year, up from $26.3 billion in the year-ago period.
There are several growing areas of concern in insurers balance sheets for the first nine months of the year. Net losses on underwriting roughly doubled to $6.2 billion, up from $3.2 billion paid out in the same period of 2009.
Combined ratios were worse, too. The industry’s average combined ratio was 101.2 in the first nine months of the year — slightly worse than the 100.7 seen in the first three quarters of 2009.
Topics Carriers Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
The Future of the Agency in a World of AI 
World’s Largest Retirement Community Taps Muni Market to Help Build More Homes 
AWS Outage a ‘Moderate Incident,’ Another Near Miss for Insurance Industry 
