Highline Data Analysis Shows Y-o-Y P&C Industry Net Income Down 80.7%, Life Industry Net Unrealized Capital Gains (Losses) Down 876% in Third Quarter

Net income was down 80.7 percent in the third quarter for the property and casualty industry compared with the same period in 2007. Losses from Hurricanes Gustav, Hanna, and Ike were the main drivers of this dramatic year-over-year decline, from $50.8 billion to $9.8 billion. Additionally, the industry-wide loss ratio rose to 77.9 percent from 76 percent in the third quarter of 2007.

The last time this industry suffered a comparable decline was in 2001, which was driven by natural disasters and September 11 losses.

The Highline Data 2008 Third Quarter Industry Analysis also revealed an 876 percent drop in net unrealized capital gains (losses) for the life insurance industry, from a gain of $5.3 billion as of Sept. 30, 2007 to a loss of $40.8 billion on the most recent filings.

This year's precipitous decline in net unrealized capital gains (losses) was mostly a result of the stock market tumble and required capital infusions from parent companies to help reduce the decline in capital and surplus, which dropped 5.7 percent from year-end 2007.

The analysis also showed a number of other signs that the industry is suffering, including a near doubling of net losses for property and casualty insurers and a 26.7 percent decline in net gain from operations for life insurers.

    To request a copy of the complete analysis, please call 201-526-1252.



       HIGHLINE DATA 2008 THIRD QUARTER INDUSTRY ANALYSIS KEY FINDINGS

                    Property & Casualty Insurance Industry

                                            Y-o-Y Change

    Net Income                                 -80.7%
    Assets                                      -0.5%
    Surplus                                     -5.8%
    Net Premiums Earned                          0.1%
    Net Losses                                  19.7%
    LAE                                          0.9%


                           Life Insurance Industry

                                            Y-o-Y Change

    Net Unrealized Capital Gains (Losses)     -875.9%
    General Account Assets                       1.8%
    Separate Account Assets                    -16.5%
    Surplus                                     -5.7%
    Net Premiums                                 5.7%
    Net Investment Income                       -3.5%
    Net Gain from Operations                   -26.7%

About Summit Business Media

Highline Data is a division of Summit Business Media. Summit Business Media strives to provide the highest-quality information for those in the insurance, financial, and professional services markets. Our information includes industry news, analysis, senior management perspectives, editorial opinion, market and consumer trends, regulatory and compliance, financial performance data, and how-to. Information is delivered via weekly, biweekly, and monthly print magazines; via electronic newsletters, daily blogs, and up-to-the-minute news websites; through live events, including trade shows, conferences, and classroom and web seminars; via book and electronic reference materials; and via financial, employee benefits, and marketing databases. Summit Business Media employs 500 people in 17 offices throughoutthe United States.

SOURCE Highline Data

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