Industry’s 2011 Q3 results prove to be a “mixed bag” once again: MSA/Baron Outlook Report

Industry results for 2011 Q3 “proved to be a mixed bag once again,” Garreth Elston writes in the Q3-2011 edition of the MSA/Baron Outlook Report.
“The overall P&C industry is still experiencing a turbulent period, and it appears that gains made in one area of the business are offset in losses in another.”
As of 2011 Q3, many of the industry’s key ratios were nearly the same as or marginally better than those of 2010 Q3, according to statistics presented in Elston’s article.
The industry (excluding Lloyd’s, ICBC, SAF and MPI) reported an overall profit of $2.146 billion in the first ninth months of 2011. This is a slight improvement of its $2.144 billion net income as of 2010 Q3.
The industry’s net loss ratio in 2011 Q3 was 70.46% (70.69% in 2010 Q3). The combined ratio was 99.58% as of 2011 Q3 (99.89% in 2010 Q3). And the MCT capital score was 251.46% as of 2011 Q3 (253.53% in 2010 Q3.
“Direct premiums written growth was strongest in personal and multi-lines compared to commercial writers, with personal’s annual growth rate being three-and-a-half times that of commercial,” Elston wrote. But “in a reversal of personal’s premium growth strength, commercial writers’ combined ratio outperformed personal’s by 7.88%, indicating the strain high claim levels (notably catastrophe and auto) continue to exert on personal lines writers.”