JUPITER, Fla.-- Property and casualty insurers more than doubled their profits during 2003, earning $32.3 billion compared to the $13.5 billion reported in 2002, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.
Property and casualty insurers reporting the largest year-over-year increases in net income include:
Company:State Farm Mutual Automobile Ins Co.
Headquarters:Bloomington, Ill.
Weiss Safety Rating:B+
Net Income (Loss) ($Mil) 4th Qtr 2003:1,467.8
Net Income (Loss) ($Mil) 4th Qtr 2002:-1,994.4
$ Change:3,462.2
Company:American Re-Insurance Co.
Headquarters:Princeton, N.J.
Weiss Safety Rating:C-
Net Income (Loss) ($Mil) 4th Qtr 2003:420.0
Net Income (Loss) ($Mil) 4th Qtr 2002:-1,778.6
$ Change:2,198.6
Company:Columbia Insurance Co.
Headquarters:Omaha, Neb.
Weiss Safety Rating:B-
Net Income (Loss) ($Mil) 4th Qtr 2003:774.3
Net Income (Loss) ($Mil) 4th Qtr 2002:-624.1
$ Change:1,398.4
Company:Firemans Fund Ins. Co.
Headquarters:Novato, Calif.
Weiss Safety Rating:C-
Net Income (Loss) ($Mil) 4th Qtr 2003:117.7
Net Income (Loss) ($Mil) 4th Qtr 2002:-1,171.7
$ Change:1,289.3
Company:Allstate Ins. Co.
Headquarters:Northbrook, Ill.
Weiss Safety Rating:A-
Net Income (Loss) ($Mil) 4th Qtr 2003:2,712.5
Net Income (Loss) ($Mil) 4th Qtr 2002:1,433.6
$ Change:1,278.9
Weiss Safety Rating: A = Excellent; B = Good; C = Fair; D = Weak; E = Very Weak; F = Failed; U = Unrated
Continued improvement in underwriting was responsible for property and casualty insurers' extraordinary performance as the industry dramatically reduced its underwriting loss to $2.9 billion in 2003, compared to the $28.2 billion loss reported a year ago.
"Escalating premiums have caused profits to soar, but improved underwriting performance is paramount to the industry's long-term financial strength," said Melissa Gannon, vice president of Weiss Ratings, Inc.
A strong performance by the stock market helped boost property and casualty insurers' investment portfolios, which reported a net investment gain of $47.8 billion compared to $46.4 in 2002. One component of the net investment gain, net realized capital gains, jumped 103 percent, as the industry reported earning $6.3 billion on the sale of investments in 2003 compared to only $3.1 billion in 2002.
Source: Weiss Ratings Inc.
