Spike in US p&c underwriting profits

The first Quarter (Q1) of 2006 net underwriting gain for the U.S. property and casualty insurance market is US$8.4 billion, representing an increase of 20.8% over the same period in 2005.
According to a report published by the Insurance Services Office and the Property Casualty Insurers Association of America, the increase in gains is indicitive of the cessation of catasrophic weather losses during 2006.
Also helping bolster the improvement in underwriting for Q1 2006, the report indicates, is a 30.7% decrease in cat losses to US$1.5 billion.
The US p&c market saw its net income drop by 3.8% to US$16.7 billion, which the report says may be a result of a lower investment income and higher federal income tax.
In addition, the report notes that the consolidated surplus for the US P&C market increased by 3% from the total reported at year end of 2005, to reach US$440.1 billion.
Earned premiums also increased by 3.3% to reach US$3.4 billion for Q1 2006.
The combined ratio for US p&c insurers during the Q1 is 91.2%, which the report says represents only a 1% increase from the 92.2% recorded in Q1 2005.
The data represents a conglomoration of insurer reports accounting for aproximately 96% of all business written by U.S. p&c insurers.