US P/S SECTOR POSTS $44.9BN IN NINE-MONTH PROFITS

The US p/c insurance industry saw cumulative net earnings for the first nine months of 2006 rise 51% to $44.9bn, largely owing to this year's benign hurricane season, according to figures compiled by Insurance Services Office (ISO) and the Property Casualty Insurers of Association of America. With the lack of significant storm losses this year, underwriting profits rebounded to $24.4bn from a year-earlier loss of $2.5bn. ISO assistant vice-president Michael Murray said that “much of the improvement in insurers’ underwriting and overall results is attributable to the decline in catastrophe losses from the record level experienced in nine-months 2005, as hurricanes Katrina and Rita slammed into the Gulf coast”. The sector’s cat losses for the nine months fell to $10.1bn from $27.5bn, the ISO said. Net earned premiums for the nine months increased 4.8% to $325.4bn, while the sector’s combined ratio improved to 91.5% from 99.9%.