…and did the chickens come home to roost or is the rooster crowing off shore? P&C reports 1.3 billion 1Q loss

“Sugarcoated” the news was not; so, I’m guessing the “right people” took note of Sam Friedman’s View from the Pressbox:

There is a phrase in journalism called “burying the lead,” meaning you fail to put the most important part of the news story right up in the first paragraph. When reporters do this, it’s just poor or lazy writing. But when sources are guilty of this sin in their press releases, it’s called “spin”–putting the best face on bad news. That’s the case with the latest industry-wide financial results reported by ISO and PCI.

Indeed, the two groups chose to “lead” with reassurances that the industry remains in good financial shape, boasting that insurers have $437.1 billion in policyholder surplus, $554.4 billion in loss and loss adjustment expense reserves to cover claims that already were filed, and another $201.5 billion in unearned premium reserves to cover losses arising during policies in effect on March 31.

It’s hard to spin a $1.3 billion first-quarter lossthe worst results it has recorded in more than 20 years, the Insurance Services Office said. The numbers are not hard to believe; but, whether they tell the whole story is an entirely different matter.

Jersey City, N.J.-based ISO said the p&c industry recorded net loss after taxes for the first three months of this year compared to net income of $8.5 billion for the same period last year.

The poor results were blamed on a combination of losses on underwriting and deterioration in investment results…ISO said the industry saw a net loss after taxes on annualized overall rate of return on average policyholders surplus. The overall rate of return on surplus dropped to negative 1.2 percent for the first quarter of this year compared to a positive 6.6 percent for the same period last year…

ISO reported that net written premiums, on a comparative basis, dropped close to 4 percent, or $4 billion, to $106.4 billion. Net earned premiums declined 2 percent, or $2.3 billion, to $1.5.6 billion.
When the “big news” of the past year has been insurers pulling out of certain areas, including entire states, it’s obvious premium income is going to drop.  Investment income likewise when headlines have screamed the investments were paper.
Note, however, the $1.3 billion loss is on taxable income.
The taxable chickens came home to roost, but,  there is still the non-taxable rooster to consider.

4 thoughts on “…and did the chickens come home to roost or is the rooster crowing off shore? P&C reports 1.3 billion 1Q loss”

  1. Doucy, you are just titling all over da’place again!
    Have been busy lately so forgive the absence of choice Tilla’rantin hehehe.
    Hmmm…how about this one from recently outting a OPP PR operative in the T-P:
    “I’m not Angry with you any longer and that is a good thing. Priceless, but a satisfaction not worth being taxed over.
    I have met something perhaps even more evil that the ASCECORPS Bad Engineers, to wit: An Unethical Historian. And, that is not a good thing at all, but quite valuable in that Predator/Prey relationship mentioned earlier. And, Ms Ryan, do I sound like prey?

    You have crossed The Line that was left on nearly every building and structure in New Orleans by Your Exquisite Corps on 8-29-05. ”
    http://blog.nola.com/guesteditorials/2009/06/point_of_view_corps_workers_st.html#preview
    Please fang on down the thread and see how the bust unfolds. Sloooooowly I toin…

    But that is some fine posts you be’swangin there Ms Doucy, so I just had to hash together two of the titles for the Ladder, with the general link thingy to’da slabnation.
    Thanks youz

  2. great links, Editilla. The good guys feel guilty about what others did that they couldn’t undo or change.

  3. A little off subject but Re: that article written by sop, of that attorney involved in those laundering of drug money activity from South America, as well he was an attorney Re: Gaylord chemical release and this. Sunday this person who aided attorneys with soliciting fake claims and has pending action to collect more, pulled a gun out on a one year and her grandmother saying they knew how to shoot. Any way the person was taken in Monday afternoon for mental evaluation. Check this out. The person was released Tuesday afternoon before five with no evaluation at all. It’s said someone connected to that release pulled strings getting them released. An additional comment to a statement of crossing the line. wooo

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