PC Insurers’ Net Income & Overall Profitability Dropped In First-Half 2006

According to ISO, the U.S. property/casualty insurance industry’s net income after taxes fell 9.3 percent to $28.3 billion in first-half 2006 from $31.2 billion in first-half 2005 as investment results deteriorated. Reflecting the decline in net income after taxes, the industry’s annualized rate of return on average surplus (net worth) fell to 13 percent in first half 2006 from 15.6 percent in first-half 2005.