The first nine months of 2013 were positive for private U.S. property/casualty insurers. Their net income after taxes rose to $43 billion in nine-months 2013 from $27.8 billion in nine-months 2012, with insurers’ overall profitability as measured by their annualized rate of return on average policyholders’ surplus increasing to 9.5 percent from 6.5 percent, according to ISO and the Property Casualty Insurers Association of America. Insurers’ pretax operating income grew to $45.7 billion from $31.4 billion in 2012.

“Insurers’ overall results for nine-months 2013 were certainly better than their results for nine-months 2012, with insurers posting their highest annualized rate of return and their best combined ratio through nine months since 2007,” said Michael R. Murray, ISO’s assistant vice president for financial analysis. “Insurers’ strong underwriting results lifted their annualized overall rate of return through nine months to 9.5 percent. Further analysis reveals that relatively benign weather, a sharp drop in U.S. catastrophe losses, and special developments affecting the mortgage and financial guaranty insurance segment account for much of the improvement in insurers’ results.”

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