combined ratio News

P/C Insurers Report $4.7B Net Underwriting Loss in 2016

Private U.S. property/casualty insurers suffered a $4.7 billion net underwriting loss in 2016-following an $8.9 billion net underwriting gain in 2015-and experienced a 25 percent drop in net income after taxes to $42.6 billion from $56.8 billion a year earlier, …

Commercial Property Insurer FM Global Reports Rise in Gross Premium, Profits in 2016

FM Global, a global business property insurer, posted an improved combined ratio of 83.2 percent in 2016—compared to 85.3 percent a year earlier—which was a market-leading result for the fourth consecutive year. Total gross premium in force increased to $5.43 …

Analysts Skeptical of Zurich Insurance Cost-Cutting, Future Growth

Zurich Insurance Group AG fell in Zurich trading after posting a quarterly profit supported by one-time gains as Chief Executive Officer Mario Greco presses ahead with an overhaul of Switzerland’s largest insurer. Net income for the three months through December …

P/C Insurers Report $1.7B Underwriting Loss in First 9 Months of 2016

Private U.S. property/casualty insurers suffered a $1.7 billion net underwriting loss in the first nine months of 2016-following a $7.3 billion net underwriting gain in nine-months 2015-and experienced a drop in net income after taxes to $31.8 billion from $44.1 …

Decline in Travelers Profit Continues

Travelers Cos., the sole property/casualty insurer in the Dow Jones Industrial Average, posted its fourth-straight profit decline as weather-related costs climbed and investment income slipped. Third-quarter net income fell 23 percent to $716 million, or $2.45 a share, from $928 …

Fitch: Homeowners’ Insurance Profits Surge While Personal Auto Stalls

The personal auto insurance industry experienced significant performance deterioration in 2015, and is not showing clear signs of recovery thus far in 2016, according to a new Personal Lines Market Update report from Fitch Ratings. In contrast, homeowners insurance experienced …

Reinsurers’ Catastrophe Defenses Weakened by Hedge Funds

It won’t take another Hurricane Katrina for reinsurers to face losses from covering the cost of storms and earthquakes. Competitors such as hedge funds have eroded prices so much that a typical year of claims could move the industry into …

Fitch: Commercial Auto Insurance Line Considered a Chronic Underperformer

U.S. commercial auto insurance has evolved into a chronically underperforming product segment for U.S. property/casualty insurers, according to Fitch Ratings. While the P/C industry has reported three consecutive years of significant underwriting profits, the commercial auto market as a whole …

Reinsurers Report 92.5% Average Combined Ratio During Past Decade

Total global reinsurer capital, comprising capital from both the traditional and alternative markets, stood at $565 billion at December 31, 2015 – a reduction of 2 percent relative to the end of 2014, according to a new report from Aon …

Fitch: Competitive Underwriting Drives U.S. Regional P/C Insurer Returns

Pricing improvements over several years in underwriting portfolios have propelled returns for U.S. regional property and casualty insurers, according to Fitch Ratings. The ability to implement further pricing actions in a more competitive market environment will have a significant influence …