US premium growth weakest since 1992
The US general insurance industry’s net income after taxes dropped 5.5% to $US15.8 billion ($18.5 billion) in the first quarter of this year.
The figure was $US16.7 billion ($19.6 billion) in the first quarter of last year and $US17.7 billion ($20.8 billion) in the first quarter of 2005.
At 0.8% for the first quarter of 2007, net written premium growth was the weakest for any first quarter since 1992. The Property Casualty Insurers Association of America (PCI) says net written premiums were $US111.42 billion ($130.6 billion) and the combined ratio increased to 91.7% from 91.1%.
PCI Chief Economist Genio Staranczak says seasonal patterns in the data also suggest that insurers’ rate of return will decline later this year.
“Insurers’ profitability in the first quarter usually exceeds their profitability later in the year, in part because of the timing of weather-related catastrophe losses. The Atlantic hurricane season runs from June 1 to November 30.
“Market surveys and US Government data indicate that escalating competition and declines in the price of insurance are cutting into premium growth.”
The figure was $US16.7 billion ($19.6 billion) in the first quarter of last year and $US17.7 billion ($20.8 billion) in the first quarter of 2005.
At 0.8% for the first quarter of 2007, net written premium growth was the weakest for any first quarter since 1992. The Property Casualty Insurers Association of America (PCI) says net written premiums were $US111.42 billion ($130.6 billion) and the combined ratio increased to 91.7% from 91.1%.
PCI Chief Economist Genio Staranczak says seasonal patterns in the data also suggest that insurers’ rate of return will decline later this year.
“Insurers’ profitability in the first quarter usually exceeds their profitability later in the year, in part because of the timing of weather-related catastrophe losses. The Atlantic hurricane season runs from June 1 to November 30.
“Market surveys and US Government data indicate that escalating competition and declines in the price of insurance are cutting into premium growth.”