P/C Industry's Q1 Net Income Doubles

The U.S. property/casualty industry's net income after taxes rose to $13.3 billion in first-quarter 2004 from $6.5 billion in first-quarter 2003 as insurers posted an underwriting profit for only the second time since the start of quarterly data going back to 1986. But growth in net written premiums slowed to 4.5 percent versus year-ago levels in first-quarter 2004 from 12.7 percent in first-quarter 2003 amid signs of intensifying competition in insurance markets. While insurers' earnings may increase for a few quarters as past rate increases continue working their way down to the bottom line, signs of resurgent competition suggest insurers' earnings are approaching a cyclical peak, according to ISO and the Property Casualty Insurers Association of America (PCI).