ISO Says Investments Negated P&C Price Increases

The property/casualty insurance industry's statutory surplus dropped $4.4 billion to $285.2 billion at year-end 2002 from $289.6 billion at year-end 2001 and surplus declined despite improvement in the industry's net income after taxes to positive $2.9 billion last year from negative $7 billion in 2001, Insurance Services Office, Inc. (ISO) and the National Association of Independent Insurers (NAII) reported yesterday. Capital losses on investments drove the decline in surplus last year. Insurers suffered $1.1 billion in realized capital losses and $20.6 billion in unrealized capital losses i...