Property Insurance: General

2007 Year-end Results

By Dr. Robert P. Hartwig, CPCU
Insurance Information Institute

The property/casualty (P/C) insurance industry reported an annualized statutory rate of return on average surplus of 12.3 percent in 2007, down from 14.4 percent in 2006. The decline in profitability in 2007 was expected and is primarily attributable to a marginal deterioration in underwriting performance, which pushed the full-year combined ratio up to 95.6 from 92.4 in 2006. Net written premium growth was down 0.6 percent in 2007, the first such decline since 1943. At the same time policyholder surplus, a measure of capacity, increased 6.5 percent to a record $517.9 billion.

The results were released  by ISO and the Property Casualty Insurers Association of America (PCI). Though profits remained reasonably strong, industry margins did fall short of those realized by the Fortune 500 group of companies, which turned in an estimated average return on equity (ROE) in the 13 to 14 percent range in 2007.

See the complete report from this link:

The Florida Senate General Government Appropriations Committee  and Senate Banking & Insurance Committee prepared an excellent overview of hurricane insurance in Florida, including the status of the Cat Fund, Citizens Property Insurance Corporation and private carriers and outlines of recent property insurance legislation. It is part of the staff analysis of CS.CS/SBs 2860 & 1196, the big Senate insurance package sponsored by President-designate Jeff Atwater, R-Palm Beach.

The overview, "Present Situation," begins on page 4 of the bill staff analysis and is available from the link below:

Florida Hurricane Insurance Overview - April 3, 2008

Sections of the overview include:

  • 2004 and 2005 Hurricane Seasons
  • Property Insurance Legislation in 2006
  • Property Insurance Legislation in 2007
  • Select Senate Committee in 2008: Status of Presumed Factor Filings
  • State of the Property Insurance Market
  • Enforcement of the Insurance Code
  • Mandatory Insurer Suspension
  • Discretionary Insurer Suspension
  • Administrative Fines
  • Unfair Insurance Trade Practices Act
  • Immediate Final Order
  • Federal and State Antitrust Laws
  • Claims Handling Requirements
  • Rate Filing Standards and Procedures
  • Rate Certification
  • Florida Commission on Hurricane Loss Projection Methodology
  • Citizens Property Insurance Corporation
  • Uniform Home Grading System
  • Wind Mitigation Premium Credits
  • Insurance Capital Build-UP Incentive Program
  • Florida Building Code and Wind-borne Debris Regions  

Provided to the House Insurance Committee by Citizens Property Insurance Corporation.

Top Writers: Homeowners Insurance Pie Chart


Citizens Property Insurance Corporation update to House Insurance Committee, March 14, 2008.

Citizens: March 14, 2008 Update


Citizens Property Insurance Corporation report to the House Insurance Committee: How would it finance losses from a 100-year probable maximum loss hurricane? 

Citizens 100-Year PML