U.S. property/casualty insurers’ full year 2009 results show a strong but incomplete recovery from the recession and financial crisis, according to figures 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 5.8 percent in 2009, up sharply from 0.6 percent in 2008. However, net income after taxes in 2009 totaled $28.3 billion, nearly 10 ten times the $3.0 billion earned in 2008, but less than half the $62.5 billion earned in 2007. Similarly, insurers’ 5.8 percent overall rate of return for last year was less than half the 12.4 percent rate of return for 2007. In his commentary on the results, I.I.I. president Dr. Robert Hartwig observes that the magnitude and speed of the turnaround is truly remarkable given the length and depth of the crisis, though the industry’s profit recovery is incomplete. According […]

Read the rest of this great post here