The insurance industry has regained a considerable amount of financial ground lost during the economic crisis, a new survey finds.
According to the Highline Data Performance Monitor, property/casualty insurance industry net income nearly tripled in 2009, to $35 billion. This gain was caused by an 11.3 % decline in net losses incurred, attributable to the absence of major catastrophes. Despite the bounce back, the $35 billion tally still trails the $68.7 billion the industry gained in 2007. The combined ratio for the industry also fell to 101.3%, down from 105.1% in 2008.
Life insurers also had a better year, recording a 15.2 % return on equity and a $76.2 billion net gain from operations, more than triple the $17.6 billion tallied in 2008. However, investment income was down to $154.5 billion, a five-year low.
"Our findings suggest that property/casualty companies will continue to strive to contain expenses and further reduce their combined ratios while life companies will continue to rebuild capital and improve investment yields this year." Laurie Dallaire, VP and director of Highline Data, said in a statement.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access