Financial Results and Commentary

Year 2017
INFLATION WATCH - July 2017 Article
Price increases relating to auto insurance property claims have been quite moderate recently. Prices for motor vehicle parts and equipment, which affect not only comprehensive and collision claims, but property damage liability as well, rose by 0.5 percent in July 2017 vs. July 2016.
Commentary on First Quarter 2017 Financial Results Article
For the property/casualty (P/C) insurance industry in the first quarter of 2017, the financial weather report (compared with 2016:Q1 and 2015:Q1) was cloudy with occasional bright spots. The clouds: higher CAT claims leading to a deteriorating combined ratio; and continued drop-off in investment yield resulting in a profit slump. The bright spots: stronger net written premium growth; and continued growth in policyholder’s surplus.
INFLATION WATCH - May 2017 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.9 percent in May 2017 vs. May 2016, before seasonal adjustment.
INFLATION WATCH - April 2017 Article
Price increases relating to auto insurance property claims have been quite moderate recently. Prices for motor vehicle parts and equipment, which affect not only comprehensive and collision claims, but property damage liability as well, dropped by 0.5 percent in April 2017 vs. April 2016.
Commentary on 2016 Year-End Results Article
U.S. economic activity slowed somewhat in 2016 compared to 2015—real GDP rose by 1.6 percent in 2016 vs. 2.6 percent in 2015—and the property/casualty (P/C) insurance industry’s results followed suit. The industry’s $42.6 billion profit for the full year 2016 was 25 percent lower than the $56.8 billion profit for 2015.
INFLATION WATCH - March 2017 Article
The BLS survey of consumer prices for motor vehicle insurance in March 2017 rose by 8.1 percent year-over-year. Of course, many factors other than prices for auto repair—such as the continuing drop in insurers’ investment income, and continuing above-CPI growth in the prices for intensive medical care, and an unusual upturn in the collision rate, which is related to the increase in the number of people employed (and adding cars to rush hour)—likely are affecting these increases.
INFLATION WATCH - February 2017 Article
Price increases relating to auto insurance property claims have been quite moderate recently. Prices for motor vehicle parts and equipment, which affect not only comprehensive and collision claims, but property damage liability as well, dropped by 0.9 percent in February 2017 vs. February 2016.
INFLATION WATCH - January 2017 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 2.5 percent in January 2017 vs. January 2016, before seasonal adjustment.
Year 2016
Commentary On First Nine Months - 2016 Results Article
The property/casualty industry’s financial results for the first three quarters of 2016 were by most measures less successful when compared to the comparable period for 2015.
INFLATION WATCH - December, 2016 Article
Core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending December 2016.
INFLATION WATCH - November, 2016 Article
Both current and expected near-term general inflation continue to be low by historical standards, but there are pockets of rising inflation.
INFLATION WATCH - October, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.6 percent in October 2016 vs. October 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.1 percent for the 12 months ending October 2016.
INFLATION WATCH - September, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.5 percent in September 2016 vs. September 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending September 2016.
2016 - Commentary On First Half Results Article
For three years in a row, quarter after quarter, property/casualty insurers produced an underwriting profit. The streak continued in the first quarter of 2016 but appears to have ended in the second quarter.
2016 - First Quarter Results Article
The property/ casualty insurance industry was profitable and growing in the first quarter of 2016.
INFLATION WATCH - July, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 0.8 percent in July 2016 vs. July 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending July 2016.
INFLATION WATCH - June 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.0 percent in June 2016 vs. June 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.3 percent for the 12 months ending June 2016.
INFLATION WATCH - MAY, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.0 percent in May 2016 vs. May 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending May 2016.
INFLATION WATCH - April, 2016 Article
Both current and expected near-term general inflation continue to be quite low. The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.1 percent in April 2016 vs. April 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.1 percent for the 12 months ending April 2016.
INFLATION WATCH - March, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 0.9 percent in March 2016 vs. March 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending March 2016.
INFLATION WATCH - February, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.0 percent in February 2016 vs. February 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.3 percent for the 12 months ending February 2016 (the largest 12-month increase since the year ending May 2012).
INFLATION WATCH - January, 2016 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 1.4 percent in January 2016 vs. January 2015, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.2 percent for the 12 months ending January 2016 (tied with the largest 12-month increase since the year ending June 2012).
Year 2015
2015 - Year End Results Article
The property/casualty insurance industry had another year of moderate profits in 2015, as measured by a return on average surplus of 8.4 percent, virtually the same as in 2014. Challenged by continuing low interest rates and a slumping stock market, the industry nevertheless posted modest premium growth and a below-100 combined ratio for the fourth straight year.
2015 - First Nine Months Results Article
The third quarter of 2015 capped a strong first nine months for the property/casualty insurance industry.
INFLATION WATCH - December, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 0.7 percent in December 2015 vs. December 2014, before seasonal adjustment. In contrast, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.1 percent for the 12 months ending December 2015.
INFLATION WATCH - NOVEMBER, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 0.5 percent in November 2015 vs. November 2014, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 2.0 percent for the 12 months ending November 2015 (by 0.1 percent, the largest 12-month increase since the year ending May 2014).
INFLATION WATCH - October, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose by 0.2 percent in October 2015 vs. October 2014, before seasonal adjustment.
2015 P/C INSURANCE INDUSTRY 2015 - First Half Results Article
The U.S. property/casualty industry had a strong first half in 2015.
INFLATION WATCH - SEPTEMBER, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—was unchanged in September 2015 vs. September 2014, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 1.9 percent for the 12 months ending September 2015.
INFLATION WATCH - AUGUST, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.2 percent in August 2015 vs. August 2014, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 1.8 percent for the 12 months ending August 2015.
INFLATION WATCH: JULY, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.1 percent in July 2015 vs. June 2015, after seasonal adjustment, and rose 0.2 percent vs. July 2014, before seasonal adjustment.
2015 - First Quarter Results Article
Not only did profits in 2015:Q1 exceed the previous high for a first calendar quarter, they did so by $3.8 billion, reaching $18.2 billion.
INFLATION WATCH: JUNE, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.3 percent in June 2015 vs. May 2015, after seasonal adjustment, and rose 0.1 percent vs. June 2014, before seasonal adjustment. However, core inflation—the overall index minus the effects of price changes for food and energy—rose 1.8 percent for the 12 months ending June 2015.
INFLATION WATCH: MAY, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.4 percent in May 2015 vs. April 2015, after seasonal adjustment, and was the same as in May 2014, before seasonal adjustment.
INFLATION WATCH - April, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.1 percent in April 2015 vs. March 2015, after seasonal adjustment, and declined by 0.2 percent vs. April 2014, before seasonal adjustment.
INFLATION WATCH - March, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.2 percent in March 2015 vs. February 2015, after seasonal adjustment, and declined by 0.1 percent vs. February 2014, before seasonal adjustment.
INFLATION WATCH - February, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—rose 0.2 percent in February 2015 vs. January 2015, after seasonal adjustment, and was unchanged vs. February 2014, before seasonal adjustment.
INFLATION WATCH - January, 2015 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—fell 0.7 percent in January 2015 vs. December 2014, after seasonal adjustment, and fell by 0.1 percent vs. January 2014, before seasonal adjustment.
Year 2014
2014 - Year End Results Article
In 2014 the property/casualty insurance industry had its second highest level of yearly profit in the post-crisis era (2013 was the only better year).
2014 - First Nine Months Results Article
Overall net income after taxes (profits) in the property/casualty insurance industry was $37.65 billion.
INFLATION WATCH - December, 2014 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—fell 0.4 percent in December vs. November 2014, after seasonal adjustment, and was up only 0.8 percent vs. December 2013, before seasonal adjustment.
INFLATION WATCH - November, 2014 Article
The CPI-U—the popular measure of inflation, sometimes called headline inflation—fell 0.3 percent in November vs. October 2014, after seasonal adjustment, and was up only 1.3 percent vs. November 2013, before seasonal adjustment.
2014 - First Half Results Article
Overall net income after taxes (profits) in the property/casualty insurance industry increased by $1.6 billion.
2014 - First Quarter Results Article
Profitability in the property/casualty insurance industry retreated modestly in the first quarter of 2014.
Year 2013
2013 - Year End Results Article
Profitability in the property/casualty insurance industry surged to its highest level in the post-crisis era in 2013.
2013 - First Nine Months Results Article
Profitability in the property/casualty insurance industry rebounded sharply in the first nine months of 2013.
2013 - First Half Results Article
Profitability in the property/casualty insurance industry rebounded sharply in the first half of 2013.
2013 - First Quarter Results Article
The property/casualty insurance industry turned in a sharply improved performance in the first quarter of 2013 in terms of underwriting performance and profitability.
Year 2012
2012 - Year End Results (Life Insurance Industry) Article
2012 - Year End Results Article
The property/casualty insurance industry turned in an improved performance in 2012 in underwriting performance and overall return on average surplus.
2012 - First Nine Months Results Article
Profitability in the property/casualty insurance industry rebounded sharply during the first nine months of 2012.
2012 - First Half Results Article
Profitability in the P/C insurance industry rebounded during the first half of 2012, propelled by a sharp drop in cat losses and acceleration in premium growth.
2012 - First Quarter Results Article
Insurers breathed a collective sigh of relief in the first quarter of 2012 as catastrophe losses fell by nearly one-half.
Year 2011
2011 - Year End Results (Life Insurance Industry) Article
2011 - Year End Results Article
Fundamentally, the P/C insurance industry remains quite strong financially, with capital adequacy ratios remaining high relative to long-term historical averages.
2011- First Nine Months Results (Life Insurance Industry) Article
2011 - First Nine Months Results Article
2011 - First Half Results Article
2011 - First Quarter Results Article