Industry's return on net worth declined in 1990. (property-casualty insurance industry) (Late Breaking News)

National Underwriter Property & Casualty-Risk & Benefits Management, July, 1991

INDUSTRY'S RETURN ON NET WORTH DECLINED IN 1990 The property-casualty insurance industry's return on net worth declined in 1990 for the third consecutive year to its lowest level since 1985, according to an Insurance Services Office report. The report, "Insurer Financial Results: 1990," cites lower realized capital gains and higher taxes as the reasons for the decline between 1989 and 1990.

Realized capital gains fell to $2.8 billion in 1990 from $4.6 billion in 1989, according to the report. Even though net income before taxes declined, federal income taxes rose by $494 million to $3.3 billion, largely due to the broadened Alternative Minimum Tax provision that took effect in 1990. The industry's net income after taxes decreased 9.4 percent to $11.1...

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