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FOR IMMEDIATE RELEASE
OLDWICK - JULY 15, 2014 09:14 AM (EDT)
Increased catastrophe and weather-related claims led to an increase in losses for the U.S. property/casualty industry in the first quarter of 2014, causing underwriting and net income to decline compared with last year's results. Despite increased losses, the industry posted another quarter of profitable underwriting producing a combined ratio of 96.4, up from 92.7 for the first quarter of 2013.
The decline in net income, combined with a drop in unrealized capital gains, resulted in a smaller increase in policyholders' surplus (PHS) during the first quarter of 2014 than was achieved in the first quarter 2013. However, PHS increased during the first quarter of 2014 to a record $671.8 billion. After tax return-on-equity also fell to 2.1%, from 3.7% in the first quarter of last year.
For the purposes of this report, data of companies in A.M. Best's mortgage guaranty and financial guaranty composites are excluded.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=226832 .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.