...This report compiles long-run statutory performance figures for the largest U.S. P/C insurance underwriters, utilizing consolidated U.S. group annual statutory financial data provided by SNL Financial, with limited adjustments to reported figures. Five key financial ratios are utilized in this study: underwriting margin, operating cash flow, ROA, ROS and the internal capital formation ratio (see Appendix A for ratio definitions). These five ratios represent a buildup from narrowly focused underwriting performance ratios to more comprehensive measures of value creation. Composition of insurance groups can change from year to year due to acquisitions and divestitures. For organizations with substantial non-U.S. or non-P/C insurance operations, these results may differ considerably from consolidated GAAP or IFRS financial statements. Likewise, U.S. statutory results may be influenced by reinsurance cessions and other transactions with offshore parents or affiliates....
