The US insurance industry reported record aggregate premiums last year, according to the Federal Insurance Office’s (FIO) first annual report.

Property and casualty net written premiums were about $US460 billion ($479.7 billion), while reported surplus reached a record high of $US597 billion ($622.4 billion) as insurers continued to recover from the financial crisis, the report says.

Net income grew 85.6% to $US37.3 billion ($38.9 billion), despite insured losses from natural catastrophes.

Insurers’ market values have also recovered since the financial crisis, but low interest rates mean investment yields remain low as a percentage of invested assets.

The top three insurers by direct premium written are State Farm on $US53.7 billion ($56 billion), Liberty Mutual with $US28.3 billion ($29.5 billion) and Allstate on $US26.7 billion ($27.8 billion), the FIO says.

The industry’s combined ratio was 103.34%, an improvement on 108.35% in 2011, with both years affected by catastrophe losses.

The reinsurance market is also changing, according to the FIO. In 1997 US reinsurers wrote more than 60% of premium ceded by US primary insurers, but this fell to 42% in 2011.

More than 2900 foreign reinsurers assumed business from US ceding insurers in 2011.

The FIO says US insurers have growth opportunities in the emerging markets of Asia and Latin America.

The Asia-Pacific region held 28% of the global middle class in 2009, but this is expected to grow to 66% by 2030, it says, citing Organisation for Economic Co-operation and Development figures.