OLDWICK, N.J.--(BUSINESS WIRE)-- Underwriting and investment losses hit the property/casualty industry hard in the first quarter, so hard that earnings were 87% lower than the results a year earlier, according to an A.M. Best Co. special report that's featured in this week's BestWeek U.S./Canada.

The year-over-year comparison shows net income for the quarter at $1.2 billion, compared with $9.4 billion for the first three months of 2008. At the root of those results was net investment income, primarily dividends from stocks and interest on bonds. The $1.2 billion reported compares with $12.3 billion for the same period a year earlier, according to BestWeek.

BestWeek Europe takes a looks at Partner Re's decision to snap up its Switzerland-based rival Paris Re in a complex $2 billion (1.4 billion euros) deal that will create a new top-five player in the reinsurance market. And while equity analysts appear to view the deal positively, at least one warned that events such as hurricane losses and counter-bids could throw it off course.

Also, in BestWeek U.S./Canada, California's proposed pay-as-you-drive insurance regulations are winning industry support as they steer closer to the marketplace. First conceived a year ago, at the height of a record surge in gasoline prices, the proposed PAYD regulations would allow automobile insurers to sell coverage by the mile. Companies would be able to create plans to sell policies based on estimated miles, verified miles and prepaid miles.


They would be permitted to offer discounts to drivers who opt to purchase mileage-verification policies. Insurers could verify miles driven through a variety of potential methods, including odometer readings taken by the insurer, an agent or designees; smog check stations; auto repair shops; self-reporting by the policyholder; or, an electronic device placed in the vehicle, BestWeek said.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please visit www.ambest.com/sales/BestWeek, or e-mail your request to customer_service@ambest.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Company

Caroline Saucer, 908-439-2200, ext. 5774

caroline.saucer@ambest.com

Source: A.M. Best Company