Insurers' cost cutting yields little improvement

Article Abstract:

An analysis of the 1994 expense-to-premium ratios of property-casualty insurance companies reveals that their cost-cutting programs have yielded few economies. Increases in employee remuneration, which increased by 2.6% to $17.34 billion, and increases in commissions and brokerage costs, which increased by 2.4% to $29.6 billion, boosted industry expenses by 3.2%. Overall, the expense and commissions as a percentage of premiums dropped by 0.1% to 26.1%. While that is the lowest ratio since 1990, it indicates that property-casualty insurers have cut expenses as much as they can.

Insurance industry

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First-half profits up; soft market to continue

Article Abstract:

Domestic property and casualty insurance companies reported increased profits for the first six months of 1995 which were aided by cost containment measures and favorable claims trends. Consolidated after-tax net income for the industry increased to $8.86 billion for the period. Pre-tax net operating income increased to $9.64 billion, a 118.5% increase from the same period in 1994. Paid claims and reserves for insurers declined by 3% to $82.77 billion during the first half of 1995.

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Workers' compensation shows great strength; 1994 results are boosted by lower losses, reforms

Article Abstract:

Financial results for property/casualty companies' workers' compensation insurance lines improved dramatically in 1994 thanks to progressive reform efforts. Underwriting losses declined to $509 million in 1994 from $2.24 billion in 1993. The workers' compensation combined ratio after policyholder dividends declined to 101.4 in 1994 from 109.1 in 1993. Incurred losses declined to $17.07 billion in 1994 from $21.7 billion in 1993.

Fire, marine, and casualty insurance, Workmen's Compensation Insurance, Workers' compensation

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