It may seem remarkable that the P/C industry was able to grow its invested asset base in a year during which there were major catastrophe claims and only a minor
gain in investment income.
Two health insurance companies posted the largest operating gains, while A1lianz Life of North America went from a $397 million operating loss in 6 months of 2007 to a $699 million operating
gain in 6 months of 2008.
Their values this month are 2.8pc up year on year, following a 3.1pc
gain in March, according to Cap.
Only 36 of The Townsend 100 Companies reported a surplus
gain in the first quarter of 2008.
Despite record earnings, and a 15%
gain in earnings in 2007, the life industry ROE was only 10.2% in 2007.
STRONG OPERATING EARNINGS, high capital gains and a decline in shareholder dividend payments produced a 4.3%
gain in surplus in the first 6 months of 2007 for the Townsend 100 Composite of 100 life insurers with 84% of the U.S.
Record shareholder dividend payments held surplus growth to a modest 5.6%
gain in 2006, well below gains of 11.6% in 2004 and 16.7% in 2003.
However, significant increases in shareholder dividend payments held surplus growth to a modest 3.5%
gain in 2005, after gains of 11.6% in 2004 and 16.7% in 2003.
"In 2005 the most significant driver of statutory net realized capital gain for New York Life was the sale of an apartment house in Manhattan for a
gain in the hundreds of millions of dollars," says William Werfelman, a spokesman for New York Life, New York.
According to data produced by Insurance Consulting & Analysis, LLC, the decline in surplus in the second quarter held growth in total surplus funds to 0.2% for the first six months of 200S, the lowest percent
gain in the last 11 years.
ONE HUNDRED COMPANIES, comprising 84% of life industry assets, reported a modest 1.7%
gain in total surplus funds in the first quarter of 2005, as interest rate spreads declined and shareholder dividends consumed half of operating earnings.
ONE HUNDRED COMPANIES, comprising 84% of life insurance industry assets, reported an 11.6%
gain in total surplus funds in 2004, on the strength of a record $26.8 billion in operating earnings, and $10 billion in net capital gains, according to data from Insurance Research & Consulting, LLC.
ONE HUNDRED COMPANIES, comprising 84% of life insurance industry assets, reported a 5.6%
gain in total surplus funds in the first 9 months of 2004, on the strength of a 27%
gain in operating earnings, less a 140% increase in shareholder dividends paid.
According to data produced by Insurance Consulting & Analysis, LLC, lack of surplus growth in the second quarter held growth in total surplus funds to 3.1% for 6 months of 2004, the third lowest percent
gain in the last 10 years.
ONE HUNDRED COMPANIES, comprising 84% of life industry assets, reported a strong
gain in total surplus funds in the first quarter of 2004 on the strength of high operating earnings and net capital gains.