Solid evidence of a substantial and sustained rebound in profitability for property/casualty insurers in the wake of the financial crisis that began in mid-2007 has emerged in the first nine month 2009 results just released by ISO and the Property Casualty Insurers Association of America. The industry reported an annualized statutory rate of return on average surplus of 4.5 percent through the first nine months of 2009, up sharply from negative 1.2 percent during the same period in 2008. In his commentary on the results, I.I.I. president Dr. Robert Hartwig noted that as recently as the first quarter of 2009 the industry recorded a negative rate of return. Moreover, stable investment market conditions and modest catastrophe losses since the end of the third quarter through late December guarantee that full-year profitability in 2009 will be much higher than the 0.5 percent return recorded in 2008. In another sign of recovery […]

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