Poor returns call for industry changes; Taking stock.(News)(review of Insurer Financial Results 2003 by the Insurance Services Office Inc.)(Industry Overview)

Business Insurance, December, 2003 by Picoult, Myron M.

Byline: Myron M. Picoult The annual publication "Insurer Financial Results'' by the Insurance Services Office is always a treasure trove of statistical information. The 2003 edition was of particular interest to me, as it helped to underscore my belief that, on a macro basis, the property/casualty business is a lousy business! As shown in the latest edition, which summarizes the industry's results for 2002 and prior years, the average GAAP return on equity posted in 2002 was 2.2% vs.

the negative 1.2% figure that was recorded in 2001. For the 10 years ending in 2000, the ROE averaged 8.1%, which was below the prior 10-year average ending in 1990 of 10.1%. The 10-year average that ended in 1980 was 13.5%. With the exception of 1986 and 1987, the average ROE...

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