Megapolis Insurance

U.S. property/casualty insurers reported $11.5 billion in net profit for the first three months of this year, compared with a $900 million loss for the same period a year ago, said Oldwick, N.J.-based A.M. Best Co. in a special report.
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Best said the improvement was driven largely by $2.9 billion in realized capital gains in the first quarter, which compared with $7.9 billion in realized capital losses for the comparable 2009 period.

Among other results, net premiums written fell for an unprecedented 10th consecutive quarter, by 1.2% to $105.8 billion, said Best. The combined ratio improved 1.2 points to 101.1%. Policyholder surplus increased 24.4%, to $545.4 billion for the 12 months ended March 31.

Within the commercial segment, excluding results for mortgage and financial guarantee insurers, insurers reported a 100% combined ratio, compared with a 96.9% combined ratio for the same period in 2009. Best said the deterioration reflects increased catastrophe-related losses, higher underwriting expenses and policyholder dividends, and the continued decline in premium volume.

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