- Posted by Admin on September 23, 2009
The property and casualty
insurance industry continued to decline in the second quarter of 2009,
with a 54.3% year-over-year drop in net income, according to the
Highline Data Performance Monitor.
This drop comes on the heels of last quarter's 89%
year-over-year decline in net income, once again putting the industry
at its lowest level since 2001. The continued global economic downturn
contributed to the industry-wide decline, leaving 60% of the property
and casualty companies included in the Highline Hundred suffering drops
in net income. Four companies had losses greater than $500 million
year-over-year. Positive signs were seen in total assets and
policyholder surplus, which increased in the second quarter after
showing declines in the first quarter.
The Performance Monitor also revealed that the life
insurance industry's net gain from operations totaled $36 billion, a
30.7% increase over last year's $27.5 billion. Capital and surplus for
the life insurance industry showed a slight increase of 1.7%, and
separate account assets, which had seen the worst losses, increased
4.3%. Net premiums continued to decline by 6.5% overall in the second
quarter, primarily driven by an 8.4% decrease in group insurance.
The insurance industry continues to struggle with the
effect of the economy and depressed stock market values. The life
insurance industry is showing some signs of improvement, but continues
to feel the impact of declines in group business due to layoffs and
reductions in company sponsored plans. The property and casualty
industry will continue to struggle through the remainder of this year
and will be especially hopeful for a mild hurricane season.
The Highline Data Performance Monitor tracks both the
industry as a whole and the top 100 companies from the property and
casualty and the life insurance industries along key financial metrics.
The Highline Hundred is a composite of the top 100 insurance companies
that identifies industry-wide trends.
HIGHLINE DATA 2009 Q2 PERFORMANCE MONITOR KEY FINDINGS
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P&C Insurance Industry
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% Change
Net Income -54.30%
Total Assets 0.80%
Policyholder Surplus 2.10%
Net Premiums Earned -3.40%
Net Losses Incurred -7.30%
Loss Adjustment Expense 0.60%
Net Premiums Written -4.90%
Life Insurance Industry
-----------------------
% Change
Net Unrealized Capital Gains (Losses) -4.60%
General Account Assets -0.50%
Separate Account Assets 4.30%
Capital & Surplus 1.70%
Net Premiums -6.50%
Net Investment Income -4.40%
Net Gain from Operations 30.70%
Source: PR Newswire / Highline Data