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PROPERTY/CASUALTY INSURANCE INDUSTRY INCOME ANALYSIS, 2007-2011 (1)

herer($ billions)
  2007 2008 2009 2010 2011
Net written premiums $440.6 $434.9 $418.4 $423.8 $437.6
     Percent change -0.6% -1.3% -3.8% 1.3% 3.3%
Earned premiums $438.9 $438.3 $422.3 $422.2 $433.9
Losses incurred 244.7 286.3 253.8 257.7 290.8
Loss adjustment expenses incurred 52.3 51.7 52.5 52.9 53.7
Other underwriting expenses 120.1 119.6 117.0 119.8 124.1
Policyholder dividends 2.4 2.0 2.0 2.3 1.8
Underwriting gain/loss 19.3 -21.2 -3.0 -10.5 -36.5
Investment income 55.1 51.5 47.1 47.6 49.0
Miscellaneous income/loss -1.0 0.4 0.9 1.1 2.3
Operating income/loss 73.4 30.6 45.0 38.2 14.8
Realized capital gain/loss 8.9 -19.8 -7.9 5.9 7.2
Income taxes/credit 19.8 7.8 8.4 8.8 2.9
Net income after taxes 62.5 3.0 28.7 35.2 19.1

(1) Data in this chart exclude state funds and other residual market insurers and may not agree with similar data shown elsewhere from different sources.

Source: ISO, a Verisk Analytics company.

NET PREMIUMS WRITTEN AND COMBINED RATIO, PROPERTY/CASUALTY INSURANCE, 2002-2011

herer($000)
Year   Net premiums written (1) Annual percent change Combined ratio after dividends (2) Annual point change (3)
2002 $367,118,562 14.1% 107.4 -9.2 pts.
2003 403,346,571 9.9 100.2 -7.2
2004 424,309,778 5.2 98.5 -1.6
2005 426,412,279 0.5 100.8 2.3
2006 448,692,479 5.2 92.8 -8.0
2007 446,736,294 -0.4 95.5 2.7
2008 439,978,511 -1.5 105.1 9.6
2009 422,975,573 -3.9 100.5 -4.6
2010 426,117,592 0.7 102.6 2.2
2011 441,632,137 3.6 108.0 5.4

(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded numbers.

Source: SNL Financial LC.

ANNUAL RATE OF RETURN: NET INCOME AFTER TAXES AS A PERCENT OF EQUITY, 2003-2012

  Property/casualty
insurance		 Life/health Selected other industries (1)  
Year Statutory
accounting (2)		 GAAP
accounting (3)		 Life/health
insurance (4)		 Healthcare
insurance (5)		 Diversified
financial (6)		 Commercial
banks		 Electric
and gas
utilities		 Fortune 500
combined
industrials
and service (7)
2003 9.5% 8.8% 9.0% NA 19.5% 14.9% 10.5% 12.6%
2004 10.7 9.4 11.0 NA 15.0 15.5 10.5 13.9
2005 10.8 9.6 13.0 16.2% 15.0 16.0 10.0 14.9
2006 14.4 12.7 12.0 19.0 15.0 15.0 11.0 15.4
2007 12.4 10.9 11.0 19.0 -1.0 11.0 11.0 15.2
2008 0.6 0.1 1.0 11.0 8.0 3.0 13.0 13.1
2009 5.9 5.0 4.0 14.0 9.0 4.0 9.0 10.5
2010 6.6 5.6 7.0 12.0 10.0 8.0 10.0 12.7
2011 3.4 2.7 8.0 15.0 12.0 8.0 10.0 14.5
2012 NA NA 7.0 12.0 18.0 9.0 8.0 15.0

(1) Return on equity on a GAAP accounting basis, Fortune.
(2) Net income after taxes, divided by year-end policyholders’ surplus. Calculated by the Insurance Information Institute from SNL Financial LC data. Statutory accounting is used by insurers when preparing the Annual Statements they submit to regulators.
(3) Return on average net worth, ISO.
(4) Return on equity on a GAAP accounting basis, Fortune. Combined stock and mutual companies, calculated by the Insurance Information Institute.
(5) Healthcare insurance and managed care.
(6) Companies whose major source of revenue comes from providing diversified financial services. These companies are not specifically chartered as insurance companies, banks or savings institutions, or brokerage or securities companies, but they may earn revenue from these sources.
(7) Fortune 500 Combined Industrial and Service Businesses median return on shareholders' equity.

NA=Data not available.

Source: SNL Financial LC; ISO, a Verisk Analytics company; Fortune.

LIFE/HEALTH INSURANCE INDUSTRY INCOME STATEMENT, 2007-2011

herer($ billions, end of year)
  2007 2008 2009 2010 2011 Percent change,
2010-2011 (1)
Revenue            
Life insurance premiums $138.3 $142.8 $120.5 $100.2 $122.8 22.5%
Annuity premiums and deposits 310.4 323.0 225.4 286.3 327.0 14.2
Accident and health premiums 143.5 156.6 162.4 169.9 171.0 0.7
Credit life and credit accident and health premiums 2.2 2.1 1.6 1.6 1.6 1.0
Other premiums and considerations 16.8 0.8 0.5 23.1 2.1 -91.0
Total premiums, consideration and deposits $611.2 $625.2 $510.4 $581.2 $623.9 7.3%
Net investment income 168.0 162.2 156.6 164.1 167.3 1.9
Reinsurance allowance -22.4 17.8 61.5 -29.3 -16.3 -44.5
Separate accounts revenue 22.9 21.2 20.4 23.4 26.1 11.7
Other income 35.3 18.3 27.8 33.9 34.0 0.2
Total revenue $815.1 $844.7 $776.7 $773.3 $835.0 8.0%
Expense            
Benefits 228.3 240.2 244.1 246.9 254.7 3.2
Surrenders 305.2 291.6 228.7 216.8 237.3 9.4
Increase in reserves 35.3 144.2 99.0 96.2 141.0 46.6
Transfers to separate accounts 66.1 22.7 11.1 29.3 32.4 10.8
Commissions 50.7 51.7 48.9 49.3 51.8 5.1
General and administrative expenses 52.1 53.6 54.2 56.8 58.5 3.0
Insurance taxes, licenses and fees 7.3 7.3 7.3 7.7 8.0 3.6
Other expenses 8.0 17.2 7.4 2.2 8.1 269.2
Total expenses $753.0 $828.3 $700.8 $705.3 $791.9 12.3%
Net income            
Policyholder dividends 17.5 17.7 15.0 15.0 15.1 0.8
Net gain from operations before Federal income tax 44.6 -1.4 61.0 53.1 28.0 -47.2
Federal income tax 11.5 -0.1 10.7 9.0 5.1 -43.3
Net income before capital gains $33.1 $-1.4 $50.3 $44.1 $22.9 -48.1%
Net realized capital gains (losses) -1.5 -50.9 -28.7 -16.0 -8.5 -46.8
Net income $31.6 -$52.3 $21.5 $28.0 $14.4 -48.8%
Pre-tax operating income 44.6 -1.4 61.0 53.1 28.0 -47.2

(1) Calculated from unrounded data.

Source: SNL Financial LC.

INVESTMENTS, LIFE/HEALTH INSURERS, 2009-2011 (1)

  Amount ($ billions) Percent of total investments
Investment type 2009 2010 2011 2009 2010 2011
Bonds  $2,291.2 $2,426.5 $2,536.3 74.59% 75.92% 75.47%
Stocks 73.9 77.9 78.4 2.41 2.44 2.33
     Preferred stock  11.7 9.1 8.1 0.38 0.29 0.24
     Common stock  62.2 68.7 70.3 2.03 2.15 2.09
Mortgage loans on real estate 316.0 307.4 323.1 10.29 9.62 9.61
     First lien real estate mortgage loans  313.2 305.2 321.1 10.20 9.55 9.56
     Real estate mortgage loans less first liens  2.8 2.1 2.0 0.09 0.07 0.06
Real estate 19.5 19.7 20.6 0.63 0.62 0.61
     Occupied properties  6.2 5.7 5.7 0.20 0.18 0.17
     Income generating properties  12.9 13.6 14.6 0.42 0.43 0.43
     Properties for sale  0.4 0.3 0.3 0.01 0.01 0.01
Cash, cash equivalent and short-term investments  122.0 95.1 96.5 3.97 2.97 2.87
Contract loans including premium notes  120.0 123.5 126.0 3.91 3.86 3.75
Derivatives NA 21.6 44.4 NA 0.68 1.32
Other invested assets  105.3 111.4 124.0 3.43 3.48 3.69
Receivables for securities  2.0 1.8 2.1 0.07 0.06 0.06
Securities lending reinvested collateral assets NA 10.6 10.1 NA 0.33 0.30
Write-ins for invested assets  21.2 0.5 0.2 0.69 0.02 0.01
Total cash and invested assets  $3,071.9 $3,196.2 $3,360.5 100.00% 100.00% 100.00%

(1) Data are net admitted assets of life/health insurers.

NA=Data not available.

Source: SNL Financial LC.

INSURANCE INDUSTRY'S FEDERAL AND FOREIGN INCOME TAXES, 2003-2007

herer($ billions)
Year Property/casualty Life Total
2003 $10.76 $7.89 $18.65
2004 14.59 10.00 24.59
2005 10.73 8.66 19.39
2006 22.51 11.25 33.76
2007 19.94 11.80 31.74
Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.

INSURANCE PROVIDED BY FAIR PLANS, FISCAL YEARS 2002-2011 (1)

  Number of      
Year Habitational policies Commercial policies Exposure (2) ($000) Direct written premiums ($000)
2002 1,422,990 81,887 $269,566,059 $1,202,010
2003 1,510,665 65,532 345,909,146 1,770,353
2004 1,907,337 138,163 400,413,034 2,164,546
2005 1,928,292 117,942 387,780,124 2,234,493
2006 2,389,299 172,070 601,859,916 4,063,324
2007 2,412,252 114,053 684,829,667 4,431,381
2008 2,190,189 90,876 612,749,753 3,727,311
2009 2,043,969 86,575 614,905,551 3,038,712
2010 2,378,736 83,243 662,633,180 3,448,576
2011 2,658,662 51,657 715,289,876 3,942,021

(1) Includes Florida’s Citizens Property Insurance Corporation, which includes FAIR and Beach Plans; data after 2002 includes the Texas FAIR Plan; data for 2004, 2005 and premiums written after 2007 include Louisiana's Citizens Property Insurance Corporation, which includes FAIR and Beach Plans; data after 2010 includes North Carolina.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.

Source: Property Insurance Plans Service Office (PIPSO).

INSURANCE PROVIDED BY FAIR PLANS BY STATE, FISCAL YEAR 2011 (1)

  Number of     
State Habitational policies Commercial policies Exposure (2) ($000) Direct written premiums ($000)
California 129,996 6,099 $40,977,632 $64,077
Connecticut  2,964 130 568,392 3,510
Delaware 2,033 81 287,578 592
D.C. 409 98 98,838 395
Florida (3) 1,667,959 25,400 510,675,121 3,084,342
Georgia 25,752 1,756 3,481,039 21,999
Illinois 6,280 107 602,483 6,194
Indiana 1,728 44 164,456 1,503
Iowa 943 38 61,217 564
Kansas 11,648 163 623,217 5,540
Kentucky 10,535 481 NA 6,161
Louisiana (3) 145,870 6,099 21,854,962 197,175
Maryland NA NA NA 1,635
Massachusetts 215,655 527 76,715,302 277,011
Michigan 29,153 453 3,517,876 30,248
Minnesota 6,186 34 466,970 4,705
Mississippi 11,661 (4) 662,035 7,470
Missouri 4,757 203 251,477 2,361
New Jersey 20,127 678 2,849,349 11,339
New Mexico 10,574 271 69,702 3,526
New York 54,292 4,260 14,447,595 35,254
North Carolina 72,755 1,619 4,594,038 25,327
Ohio 33,101 597 6,956,653 22,320
Oregon 2,496 90 187,623 961
Pennsylvania 23,350 1,595 1,735,860 8,378
Rhode Island 16,444 136 3,968,731 20,573
Texas 120,641 (4) 15,979,040 83,066
Virginia 27,353 559 3,443,774 15,258
Washington 34 34 17,210 153
West Virginia 638 71 31,706 384
Wisconsin 3,328 34 NA NA
Total 2,658,662 51,657 $715,289,876 $3,942,021

(1) Does not include the FAIR Plans of Arkansas and Hawaii. Data for Maryland is incomplete.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
(3) Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans.
(4) The Mississippi and Texas FAIR Plans do not offer a commercial policy.

NA=Data not available.

Source: Property Insurance Plans Service Office (PIPSO).

INSURANCE PROVIDED BY BEACH AND WINDSTORM PLANS, FISCAL YEAR 2011 (1)

  Number of    
State Habitational policies Commercial policies Exposure (2) 
($000)		 Direct written premiums ($000)
Alabama 23,194 94 $4,037,476 $45,069
Mississippi 46,961 1,371 7,210,469 79,558
North Carolina 196,067 10,836 69,905,290 303,407
South Carolina 47,252 1,066 17,149,152 97,433
Texas 257,753 16,901 71,083,333 403,748
Total 571,227 30,268 $169,385,720 $929,215

(1) The Florida and Louisiana Beach Plans merged with their FAIR Plans.
(2) Exposure is the estimate of the aggregate value of all insurance in force in each state’s Beach and Windstorm Plan in all lines (except liability, where applicable, and crime) for 12 months ending September through December.

Source: Property Insurance Plans Service Office (PIPSO).