Industry Issues | Financial Results

Financial Results

Property Casualty Insurers’ Net Income Rose Modestly in First-Half 2014

Private U.S. property casualty insurers’ net income after taxes rose $1.6 billion to $26.0 billion in first-half 2014 from $24.4 billion in first-half 2013. Reflecting insurers’ net income after taxes, policyholders’ surplus — insurers’ net worth measured according to Statutory Accounting Principles — grew to $671.6 billion at June 30, 2014, from $653.4 billion at year-end 2013.

The increase in insurers’ net income after taxes is the net result of a decline in pretax operating income, an increase in realized capital gains on investments (not included in operating income), and a small reduction in federal and foreign income taxes.

Net gains on underwriting fell to $0.3 billion in first-half 2014 from $2.2 billion in first-half 2013. The combined ratio — a key measure of losses and other underwriting expenses per dollar of premium — deteriorated to 98.9 percent for first-half 2014 from 98.0 percent for first-half 2013, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business and PCI.


Educational Resources
The documents below provide background on the insurance industry's financial results.

News Release on 2014 First Half Financial Results
Property Casualty Insurers’ Net Income Rose Modestly in First-Half 2014 as Increase in Realized Capital Gains Offset Ongoing Weakness in Operating Income | October 6, 2014

News Release on First Quarter Financial Results
Property Casualty Insurers’ Profits and Profitability Slipped in First-Quarter 2014 as Gains on Underwriting Shrank | July 3, 2014

News Release on 2013 Financial Results
Property Casualty Insurers' 2013 Profits and Profitability Reflect First Net Gains on Underwriting Since 2007 | April 21, 2014

News Release on 2013 Third Quarter Financial Results
Property Casualty Insurers' Bottom Line Improves Through Third Quarter 2013 | December 23, 2013