Property Casualty Insurers Association of America Property Casualty Insurers Association of America
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  • Jeffrey Brewer
    847-553-3763
    jeffrey.brewer@pciaa.net
  • Giuseppe Barone/Erin Bzymek
    MWW Group (for ISO) 
    201-507-9500

  • Loretta Worters
    I.I.I.
    (212) 346-5500

  • FOR RELEASE ON RECEIPT
  • June 26, 2017
  • Property/Casualty Insurance Industry’s Net Income Drops 42.2 Percent in First-Quarter 2017
  • JERSEY CITY, N.J., June 26, 2017 — The private U.S. property/casualty insurance industry saw its net income after taxes drop to $7.7 billion in first-quarter 2017 from $13.4 billion in first-quarter 2016—a 42.2 percent decline—and its overall profitability as measured by its annualized rate of return on average policyholders’ surplus fall to 4.4 percent from 7.9 percent, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business, and the Property Casualty Insurers Association of America (PCI).

    The industry experienced $7.3 billion in direct catastrophe losses—the highest first-quarter catastrophe losses since the 1994 Northridge earthquake and $2.3 billion above the direct catastrophe losses for first-quarter 2016. Insurers’ combined ratio deteriorated to 99.6 percent for first-quarter 2017 from 97.4 percent for first-quarter 2016.

    Insurers also saw some improvement from a year earlier. Net written premium growth accelerated to 4.0 percent for first-quarter 2017 from 3.2 percent for first-quarter 2016. Net investment gains[1] increased by $1.2 billion to $14.4 billion in first-quarter 2017 from $13.2 billion for first-quarter 2016. The industry’s surplus[2] reached a new all-time high value of $709.0 billion as of March 31, 2017, increasing $8.1 billion from $700.9 billion as of December 31, 2016.




     

    [1] Net investment gains equal the sum of net investment income and realized capital gains (or losses) on investments.

    [2] Policyholders’ surplus is insurers’ net worth measured according to Statutory Accounting Principles.

    View the full report from ISO and PCI here

    About ISO
    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.

  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $202 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 33 percent of the commercial property and liability market and 34 percent of the private workers compensation market.
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