US insurers report $US1.3 billion first-quarter loss
US property and casualty insurers reported a $US1.3 billion ($1.6 billion) loss during the first quarter as underwriting losses and falling investment returns took their toll on the market.
The result compared terribly to the first quarter last year when US insurers earned a collective profit of $US9.8 billion ($12.2 billion).
A net underwriting loss of $US2.5 billion ($3.1 billion) combined with a 70% drop in investment income of $US3.7 billion ($4.6 billion) to contribute to the poor result.
The results, contained in a report by the Insurance Services Office and Property Casualty Insurers Association of America, show net written premium during the quarter fell 3.6% to $US106.4 billion ($132.5 billion).
The combined ratio moved into negative territory, deteriorating from 99.9% to 102.2%.
“Property and casualty insurers absorbed a pounding in first-quarter 2009, as the recession deepened and stock markets tumbled,” an Insurance Services Office spokesman said.
The result compared terribly to the first quarter last year when US insurers earned a collective profit of $US9.8 billion ($12.2 billion).
A net underwriting loss of $US2.5 billion ($3.1 billion) combined with a 70% drop in investment income of $US3.7 billion ($4.6 billion) to contribute to the poor result.
The results, contained in a report by the Insurance Services Office and Property Casualty Insurers Association of America, show net written premium during the quarter fell 3.6% to $US106.4 billion ($132.5 billion).
The combined ratio moved into negative territory, deteriorating from 99.9% to 102.2%.
“Property and casualty insurers absorbed a pounding in first-quarter 2009, as the recession deepened and stock markets tumbled,” an Insurance Services Office spokesman said.