Highline Data Analysis Shows P&C Industry Net Income Down 54%, Life Insurance Industry Shows Signs of Improvement in Second Quarter

The property and casualty insurance industry continued to decline in the second quarter of 2009, with a 54.3% year-over-year drop in net income, according to the Highline Data Performance Monitor.

This drop comes on the heels of last quarter's 89% year-over-year decline in net income, once again putting the industry at its lowest level since 2001. The continued global economic downturn contributed to the industry-wide decline, leaving 60% of the property and casualty companies included in the Highline Hundred suffering drops in net income. Four companies had losses greater than $500 million year-over-year. Positive signs were seen in total assets and policyholder surplus, which increased in the second quarter after showing declines in the first quarter.

The Performance Monitor also revealed that the life insurance industry's net gain from operations totaled $36 billion, a 30.7% increase over last year's $27.5 billion. Capital and surplus for the life insurance industry showed a slight increase of 1.7%, and separate account assets, which had seen the worst losses, increased 4.3%. Net premiums continued to decline by 6.5% overall in the second quarter, primarily driven by an 8.4% decrease in group insurance.

The insurance industry continues to struggle with the effect of the economy and depressed stock market values. The life insurance industry is showing some signs of improvement, but continues to feel the impact of declines in group business due to layoffs and reductions in company sponsored plans. The property and casualty industry will continue to struggle through the remainder of this year and will be especially hopeful for a mild hurricane season.

The Highline Data Performance Monitor tracks both the industry as a whole and the top 100 companies from the property and casualty and the life insurance industries along key financial metrics. The Highline Hundred is a composite of the top 100 insurance companies that identifies industry-wide trends.

 

HIGHLINE DATA 2009 Q2 PERFORMANCE MONITOR KEY FINDINGS ------------------------------------------------------ P&C Insurance Industry ---------------------- % Change Net Income -54.30% Total Assets 0.80% Policyholder Surplus 2.10% Net Premiums Earned -3.40% Net Losses Incurred -7.30% Loss Adjustment Expense 0.60% Net Premiums Written -4.90% Life Insurance Industry ----------------------- % Change Net Unrealized Capital Gains (Losses) -4.60% General Account Assets -0.50% Separate Account Assets 4.30% Capital & Surplus 1.70% Net Premiums -6.50% Net Investment Income -4.40% Net Gain from Operations 30.70% ------------------------ -----

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Highline Data is part of Summit Business Media. Summit Business Media is the leading B2B media and information company serving the insurance, investment and professional services markets through a variety of channels, including online, print and live events. SBM provides breaking news and analysis, in-depth practice management strategies, business-building techniques and actionable data to the markets it serves. Through its Media and Reference Divisions, the company publishes 17 magazines and 150 reference titles. The Event Division hosts a dozen conferences in support of Summit's magazine brands and sponsors the International Investment Conferences on global mining investment. SBM's Data Division, comprised of Highline Data and Judy Diamond Associates, is the leading data provider of financial and marketing information on insurance companies, life and property-casualty agents and investment advisors.

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SOURCE Highline Data