Industry ‘strong in the face of adversity’ on multiple fronts

Sector’s net income would have been lowest for 20 years but for loss suffered in 2001 as result of World Trade Centre attack

The US property/casualty industry saw its policyholders’ surplus fall by $62.3bn, or 12%, to $455.6bn at 31 December 2008 as profitability tumbled last year thanks to heavy catastrophe losses, poor investment results, and the impact of the financial crisis on the mortgage and financial guaranty segments. Despite the fall in policyholders’ surplus, leverage ratios suggest that insurers remained strongly capitalised, according to industry experts at the Insurance Services Office (ISO) and the Property Casualty Insurers Association of America (PCI).