...Return to Underwriting Profit: The U.S. property/casualty insurance industry in 2013 reported its best underwriting results since 2007 with a combined ratio of 96.2%. This performance is tied to the cumulative effect of positive insurance pricing changes that commenced in the second half of 2011 across a wide variety of industry segments, as well as more moderate insured catastrophe losses relative to historical experience. 2013 Profits Sharply Higher: Strong underwriting performance sparked a sharp improvement in industry profitability. Statutory operating earnings surged by 80% that translates to an 8.5% operating return on surplus for the industry aggregate. The net income return on surplus was 11.7%, including realized investment gains. Strong Surplus Growth: Industry aggregate policyholders' surplus grew by 12% in 2013 to a record high of $665 billion. Record earnings, combined with all-time high unrealized investment gains, driven by favorable equity market performance were the key...
