Insurers suffers record low in first half premium growth

The low level of volume growth in the first half had a detrimental effect on the industry’s underwriting results

Net written premium growth for the US property/casualty industry in the first six months of 2007 was the weakest of any first half in at least two decades, according to a survey produced by the Insurance Services Office (ISO) and the Property Casualty Insurers Association of America (PCI). As a result the industry saw a slippage in both underwriting results and pre-tax profits compared with the same period in 2006. At the same time, the industry’s overall profitability as measured by its annualised rate of return on average policyholders’ surplus (or statutory net worth) slipped from 13.5% in the first half of 2006 to 13.1% this year due to deterioration in underwriting results.