Financial guarantees and cats send underwriting results into the red

Premium levels fall for an “unprecedented” fourth successive quarter as underwriting results slump to $0.6bn loss

Underwriting results for US property/casualty insurers dipped into negative territory in the first quarter of 2008, as increased catastrophe claims and soaring losses for mortgage and other financial guarantee insurers hit home. At the same time the p/c industry saw its net premium income decline for an “unprecedented” fourth quarter in a row due to escalating competition and declining premium rates.