US property/casualty insurers’ net income more than tripled to $US16.4 billion ($16 billion) in the first half of this year, as natural catastrophes eased.

The figure compared with $US4.8 billion ($4.7 billion) in the previous corresponding period, according to the Insurance Information Institute (III).

Income rose because of improved underwriting results – with net losses on underwriting falling to $US7 billion ($6.8 billion) from $US24.1 billion ($23.5 billion) – which, in turn, was driven by a drop in catastrophe losses to $US12.6 billion ($12.3 billion) from $US25.7 billion ($25 billion).

Michael Murray, Assistant VP for Financial Analysis at property/casualty risk analyst ISO, says despite the improvement, “insurers’ overall rate of return remains sub-par compared with long-term historical norms, and insurers now need much better underwriting results just to be as profitable” as they once were.

“With investment yields, financial leverage and tax rates like those in the first-half of 2012, ISO estimates that the combined ratio would have to improve almost five percentage points to 97.4% for insurers to earn their long-term average rate of return.”

The combined ratio improved to 102.2% in the first half of the year, compared with 110.5% in the catastrophe-hit previous corresponding period.

Income was also aided by an increase in miscellaneous other income to $US1.7 billion ($1.7 billion) from $US600 million ($585 million). The improvement was partially offset by a 10.6% drop in net investment gains to $US25.4 billion ($24.7 billion).

The III says the figures are consolidated estimates for all US private property/casualty insurers based on reports for at least 96% of business written.