P&C assets grow on investment gains

Improved performance of equity markets has boosted the total admitted assets of the U.S. p&c industry, according to a new report by A.M. Best.
2003 saw p&c assets grow by almost 13%, double in increase seen in 2002. Total admitted assets at yearend 2003 stood at US$1.17 trillion.
However, low interest rates caused a 0.5% decline in gross investment yield. Gross yield on invested assets for 2003 was 5.0%, down from 5.5% the previous two years.
The greatest increase in value was seen in cash and short-term investments, up 20% for 2003. At the same time, nonaffiliated common stocks as percentage of total assets were up 1%. However, nonaffiliated bonds as a percentage of total assets remained stagnant last year, despite the value of this asset class rising 13%.
The top five U.S. insurers in terms of total admitted assets are: State Farm, Berkshire Hathaway, AIG, Allstate and Travelers. The top five in terms of gross yield on invested assets are: Anthem Group (10.7%), Hartford (8.3%), GE Global (7.2%), St. Paul (7.1%), and Liberty Mutual (6.5%).