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The U.S. property casualty (PC) insurance industry in 2011 reported its largest underwriting loss since 2006, according to insurance ratings agency A.M. Best.  The industry’s operating performance sharply deteriorated during last year as catastrophe-related losses mounted throughout the year.  Catastrophe events both here and abroad more than doubled the loss amount reported for 2010, A.M. Best said.

Although net income dropped 3% for the P&C insurance industry as a whole in the third quarter, it has spiked very nicely -- by 62% -- in the past nine months. So says a recent report produced jointly by the Property and Casualty Insurers Association of America, Insurance Information Institute, and Insurance Services Office (ISO).

"It is now all but certain that the P&C insurance industry will record positive growth in 2010 -- the first (time) since 2006,” says Robert P. Hartwig, president of the Insurance Information Institute, which is based in New York City. “While underwriting losses deteriorated marginally, the industry is still operating on a ‘break-even’ basis with a combined ratio of 99.7, after excluding mortgage and financial guaranty insurers.”