P/C INSURERS REPORT FIRST UNDERWRITING PROFIT SINCE 1997:

Dramatic improvements in underwriting performance by the nation’s property/casualty insurers led to the first underwriting gain in nearly seven years, according to the Jupiter, Fla.-based financial analysis firm Weiss Ratings Inc. The industry reported a $5.5 billion net underwriting gain in the first quarter of 2004, compared to the $1.1 billion loss reported during the same period a year ago. Property/casualty insurers reporting the largest improvement in underwriting performance included Hartford and exclusive agent companies State Farm and Allstate. Property/casualty insurers also enjoyed a surge in net realized capital gains, earning $3.2 billion on the sale of investments in first quarter 2004, representing a 182.1 percent increase compared to the $1.1 billion reported during the same quarter in 2003. The performance in the market, coupled with insurers’ solid underwriting performance, contributed to industry earnings of $13.6 billion, a $6.5 billion, or 91.5 percent, profit jump over the $7.1 billion earned in the first three months of 2003. Among the 2,463 property/casualty insurers reviewed by Weiss, 15 companies were upgraded, while 17 were downgraded.