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Accidents
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Property Insurers Income Still Up

Property/Casualty Insurers' Income, Surplus Rise Despite Record Catastrophe Losses - December 28, 2005 (Source: Insurance Journal - PCI, ISO, III) - Including losses from Hurricanes Dennis, Katrina, Ophelia and Rita, insured property losses due to catastrophes through nine-months of 2005 totaled $47.6 billion - nearly double the $27 billion in direct insured property losses due to catastrophes through the first nine months of 2004. Hold your tears though, because the industry's net income after taxes still rose 4.4 percent, or $1.2 billion, to $28.8 billion in the same nine months of 2005. As a result the industry's surplus (statutory net worth) increased 5.2 percent, or $20.4 billion, to $414.3 billion at September 30, 2005 from $393.8 billion at the end of 2004 according to ISO and the Property Casualty Insurers Association of America (PCI). "Given the massive catastrophe losses absorbed by insurers in nine-months 2005, the increase in income and surplus during the first three quarters of the year is a testament to the underlying financial health of the industry" said Gregory Heidrich, PCI senior vice president for policy development and research. Isn't it comforting to know that the insurance business is so profitable that even when disaster strikes, profits still go up?