US insurers are recovering from the global financial crisis with record profits and capital surpluses, according to the Federal Insurance Office (FIO). 

The regulator says both the property and casualty (P&C) and the life and health sectors achieved good results last year.

The P&C sector reported a combined surplus of $US655 billion ($743 billion) on “modest” premium growth. “The protracted low interest rate environment has been a drag on net income,” the FIO says in its annual report, released last week.

It notes lower catastrophe losses contributed to the P&C sector’s annual net income of $US72 billion ($81.7 billion) – a new record, topping the previous high set in 2006 by $US6 billion ($6.8 billion).

Quoting industry sources, the FIO says capital in the alternative risk transfer market grew to $US50 billion ($56.7 billion) last year, up nearly 30% on the previous year.

FIO statistics show the largest personal lines insurer in the US is State Farm, with a market share of 19.07% and gross written premium of $US50.9 billion ($57.7 billion).

The largest commercial insurer is AIG, which wrote business worth $US16.5 billion ($18.7 billion) last year, giving it a market share of 6.09%.