Thursday, Jun 30,2011
By: Bruce Berry
Though property/casualty insurance companies saw their profits fall during the first quarter of the year, experts said Americans shouldn't be concerned that their homeowners insurance company won't have the funds to cover property damage from any storms this summer.
ISO and the Property Casualty Insurers Association of America reported private property insurance companies in the U.S. brought in $7.8 billion after taxes during the first quarter of the year. That was down from $8.9 billion during the same time period one year earlier, and other key measures showed P/C insurance companies saw a smaller rate of return on certain lines of profit. Even so, insurers' net worth increased 1.4 percent on a quarterly basis to $564.7 billion during the first quarter. That showed companies have maintained a healthy surplus level, something that will come in handy in future incidents.
"While the declines in property/casualty insurers' net income and return on surplus in first-quarter 2011 may be bad news for insurance companies, overall surplus rose to a record high and consumers can rest assured that insurers have the financial resources necessary to cover claims even if this year's hurricane season is as bad as the experts predict," said David Sampson, PCI's president and CEO.
Forecasts from Colorado State University say this year's Atlantic hurricane season could be as busy as last year's, something that may have some East Coasters consulting their home insurance policies to ensure coverage.
For more about the 2011 hurricane season you can visit: NOAA's Office of Climate, Water and Weather Services
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