U.S. reinsurer profits up

U.S. reinsurers are reporting strong results in the first quarter of 2003, says the Reinsurance Association of America (RAA).In its underwriting report for 29 member insurers, the RAA says net written premiums were up to US$8.5 billion from US$6.7 billion reported in the first quarter last year.Overall, the combined ratio sat at 96.4%, down from 101.8% a year earlier, and the loss ratio is a solid 71.3%.Reinsurers posted an underwriting gain of US$8.9 million, plus investment income of US$1.2 billion. For the 26 companies reporting full results (versus three affiliates who do not report overall income/loss), net income of US$1.3 billion was reported, more than double the US$555 million posted in the first quarter last year. Policyholder surplus for the most recent quarter is US$42.2 billion.Among the big winners is General Re Group with net income of US$375.5 million in the quarter, National Indemnity at US$328.6 million, and American Re at US$258.2 million, Employers Re at US$101.5 million.On the other end of the spectrum, struggles were reported by Swiss Re America with a net loss of US$56.8 million in the quarter, PMA Capital with a net loss of US$27.6 million, and Gerling Global Re with a loss of US$22.4 million.