The Reinsurance Association of America (RAA) – which is made up of 20 US reinsurers – has reported a $US2.7 billion ($4.2 billion) net profit during the first nine months, which is almost 50% down on last year’s result.

The reinsurers booked $US19 billion ($29 billion) in net premium during the first three quarters, a $US1.1 billion ($1.7 billion) increase against the corresponding period last year.

Surging loss and expense ratios took a toll on the reinsurers as the group’s combined ratio slid ten percentage points from 94.1% to 104.2%.

Underwriting income for the period slumped from $US1.18 billion ($1.83 billion) in profit last year to a loss of $US1.02 billion ($1.58 billion).

Figures were well down on last year when RAA members recorded a $US5.3 billion ($8.2 billion) net profit for the nine months to September 30.