Stock, bond improvement boosts insurers' profits

Article Abstract:

The financial returns of property-casualty insurance companies' investment portfolios have been boosted by the bull stock and bond markets. The industry has seen its profits triple in the first nine months of 1995 compared to the same period in 1994. For the first three quarters of 1995, property-casualty insurers posted an aggregate after-tax profit of $14.92 billion, up from $5.08 billion in the same period of 1994. Investment income and capital gains totalled $30.76 billion for the period, up 7% from 1994.

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Decline continues for top 100 insurers

Article Abstract:

Property casualty insurers experienced a decline in pretax net-investment yield from 6.5% in 1992 to 5.9% in 1993. Industry asset growth, since 1989, averaged only 7% yr, as compared to 11.2% from 1984-88. Higher catastrophe levels, declining investment yields and competitive market conditions were largely responsible for the industry's declining asset growth. The top 100 property casualty insurers are ranked according to asset yields.

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Catastrophes force shift in focus of p/c insurers

Article Abstract:

A.M. Best reflects the catastrophe exposure of companies in the property/casualty insurance industry in each firm's rating. As a result, these insurance companies understand their property exposures better and manage their risks in a wiser fashion. Underwriting in the earthquake, homeowners' and commercial multiperil categories have not had a profit since 1981.

Evaluation

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