Property and Casualty Insurers See Profits Slip

Profits of the nation's property/casualty insurers decreased 1.4% to $51.4 billion for the first nine months of 2007, from a peak of $52.1 billion in the same period in 2006.

Although large insurers have begun reporting year-end results, the latest full set of regulatory data for the more than 2,600 property/casualty insurers reflects results through Sept. 30, 2007.

The property/casualty industry comprises more than 30 lines of business, and across the board premiums are flat or declining as the industry suffers through a soft market.

As a result of declining underwriting revenues, the industry looks to investment gains to compensate for the declines. Investment gains through third quarter 2007 hit $49.9 billion, up 13.7% from $43.9 billion in 2006. At the same time, gains from underwriting business fell 25.5% to $19.3 billion through third quarter 2007 from $25.9 billion in 2006. ...