RAA: U.S. Reinsurers Had Higher Profits, Improved Underwriting Results in 2012

March 15, 2013

The Reinsurance Association of America (RAA) said a group of 19 U.S.-based property/casualty reinsurers reported higher net written premiums and net income for 2012 compared to 2011.

The RAA said Thursday that a survey of statutory underwriting results showed these 19 reinsurers wrote $29.5 billion of net premiums for 2012, up 11.7 percent compared to $26.4 billion for 2011.

The combined ratio for the group was 96.2 percent for 2012, improving from a 107.2 percent combined ratio reported for 2011. The combined ratio was attributable to a 66.1 percent loss ratio and an expense ratio of 30.1 percent. The overall net income for the reinsurers were $7.98 billion last year, up nearly 20 percent from $6.69 billion in 2011.

The 19 companies in the survey were: American Agricultural Insurance Co., Axis Reinsurance Co., Berkley Insurance Co., EMC Reinsurance Co., Endurance Reinsurance Corp. of America, Everest Reinsurance Co., General Re Group, Munich Re America Corp., National Indemnity Co., Odyssey Reinsurance Group, Partner Reinsurance Co., Platinum Underwriters Reinsurance Inc., QBE North America, SCOR US Group/SCOR Re, Sirius America Insurance Co., Swiss Reinsurance America Corp., The Toa Reinsurance Co. of America, Transatlantic Reinsurance Company/FairCo, XL Reinsurance America.

The following chart shows statutory results of the 19 reinsurers for the 12 months ended on Dec. 31, 2012, from a survey by the Reinsurance Association of America. (All dollar figures are in thousands.)

Reinsurer Net Premiums Written Combined Ratio Investment Income Net Income/(Loss)
American Agricultural Insurance $283,567 101.4% $8,856 $10,005
Axis Reinsurance $407,527 107.4% $46,986 $34,973
Berkley Insurance $1,719,304 99.8% $347,597 $294,521
EMC Reinsurance $107,246 90.2% $11,970 $16,382
Endurance Re Corp. of America $239,823 123.9% $20,568 ($19,903 net loss)
Everest Reinsurance $1,581,037 89.7% $228,335 $359,816
General Re Group $1,209,645 89.9% $395,347 $317,943
Munich Re America $3,113,015 96.6% $392,393 $411,258
National Indemnity $7,124,005 90.4% $5,773,314 $5,280,672
Odyssey Reinsurance $2,273,357 87.0% $107,052 $202,448
Partner Reinsurance $922,992 95.3% $115,920 $182,910
Platinum Underwriters Reinsurance $381,604 87.4% $30,779 $72,981
QBE North America $3,203,726 106.9% $42,274 ($49,202 net loss)
SCOR US Group/SCOR Re $830,290 110.4% $32,226 ($97,072 net loss)
Sirius America Insurance $271,201 109.7% $29,615 $26,176
Swiss Reinsurance America $1,439,426 74.6% $200,641 $431,839
Toa Reinsurance Co. of America $391,273 104.1% $41,418 $32,552
Transatlantic Reinsurance Co./FairCo $3,141,216 103.9% $461,053 $409,785
XL Reinsurance America $841,190 110.9% $123,482 $65,541
Total Results $29,481,444 96.2% $8,409,826 $7,983,625

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