combined ratio
Workers’ compensation line shows mixed 2011 resultsPosted by RJ and Makay on May 17, 2012 |
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While workers’ compensation premium increased 7.4% in 2011, the combined ratio for the line remains at an unsustainable level, according to a new report by the National Council on Compensation Insurance (NCCI). The combined ratio came in at 115 in 2011, the same level as in 2010. The current state of the market remains “conflicted,” the council said in its annual State of the Line workers’ compensation market analysis.
Private U.S. property/casualty insurers’ net income fell to $19.1 billion in 2011, down from $35.2 billion in 2010, according to Insurance Services Office Inc. (ISO) and the Property Casualty Insurers Association of America (PCI). Despite the deteriorating results, the industry ended the year with strong forth-quarter performance. Insurers’ overall profitability, as measured by the rate of return on average policyholders’ surplus, fell to 3.5% in 2011 from 6.6% in 2010.
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.
