With a net income decrease of over $20 billion and an increase in statutory combined ratio of over 8 percentage points based on year-to-year comparisons of the first nine months of 2010 and 2011, the P&C sector continues to weather a tumultuous storm. High natural catastrophe-related losses have devastated insurers bottom lines and decimated underwriting performance as a whole.

The industry’s net income dropped to $12.8 billion through the first nine months, compared to $33 billion for the same period last year. Meanwhile, on a year-to-year basis, the industry’s combined ratio jumped from 99.8 percent to 108.3 percent. According to A.M. Best’s report, the industry’s investment performance was impacted by the low interest-rate environment, volatility in the equity markets and widening credit spreads.

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