Loretta Worters for I.I.I.
JERSEY CITY, N.J., — Private U.S. property/casualty insurers saw their net income after taxes fall to $13.3 billion in first-quarter 2016 from $18.1 billion in first-quarter 2015—a 26.6 percent decline—and their annualized quarterly yield on investments drop to 2.9 percent—the lowest this century—from 3.1 percent a year earlier, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business, and the Property Casualty Insurers Association of America (PCI).
Insurers’ combined ratio deteriorated to 97.5 percent in first-quarter 2016 from 95.7 percent in first-quarter 2015, and net written premium growth slowed to 3.2 percent in first-quarter 2016 from 3.8 percent a year earlier. Net investment income dropped to $10.9 billion in first-quarter 2016 from $11.7 billion a year earlier, and realized capital gains decreased to $2.3 billion from $4.7 billion, resulting in $13.2 billion in net investment gains for first-quarter 2016, down $3.2 billion from a year earlier.
Direct insured property losses from catastrophes striking the United States totaled $4.8 billion in first-quarter 2016, up from $3.6 billion a year earlier and above the $3.1 billion average for first-quarter direct catastrophe losses for the past ten years.
To view the full report from ISO and PCI, click here.
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting, and claims information and analytics; compliance and fraud identification tools; policy language; information about specific locations; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a Verisk Analytics (Nasdaq:VRSK) business. For more information, please visit www.verisk.com/iso.