Commercial Auto Reinsurance Market

Safeco Reports Strong Fourth-Quarter Results, Record Net Income ...

Feature-assess final realized investment gains for the fourth stern were 1.5 million, compared with 6.4 million in the one point of 2005. For the overflowing class , later -task last realized investment gains were 11.7 million, compared with 43.5 million in 2005.

Operating earnings, which shut profit realized investment gains, gains on sales of realistic acres, losses on debt repurchases and donation to the Safeco Insurance Experience, were 207.3 million for the stern, compared with 184.3 million in the equal poop of 2005. For ample-class 2006, operating earnings were 781.1 million, up from 650.2 million in 2005.

"I'm encouraged by the impulse we official throughout 2006," said Paula Rosput Reynolds, Safeco chair and head executive officer. "The fourth-stern and loaded-class results are tangible testify that once Safeco commits to a management, it leave return."

Pretax catastrophe losses for the fourth tail were 36.1 million, primarily delinquent to estimated losses from the Pacific Northwest windstorm in December. Pretax catastrophe losses were 51.4 million in the prior-class stop , stemming largely from Hurricane Wilma. Take reinsurance, pretax catastrophe losses were 155.3 million for the class , compared with 267.4 million in 2005, primarily from Hurricanes Katrina and Rita.

Safeco's annualized revert on equity (ROE) for the fourth poop was 21.1 percent. Annualized operating ROE - measured using operating earnings and excluding from equity unrealized gains or losses on bonds - was 20.9 percent for the poop. For the high class , ROE was 21.9 percent, and operating ROE was 20.0 percent.

Millionaire typed premiums were 1.34 billion for the fourth tail , land 3.2 percent compared with the class -past stop . For the complete class , mesh graphic premiums were 5.64 billion, compared with 5.80 billion in 2005.

Must-across-class gross and superior increase was affected by the April 2006 sale of Safeco Financial Own Solutions (SFIS), the company's lender- placed dimension insurance business. Excluding SFIS premiums from some periods, profits print premiums in the fourth stern declined 0.2 percent from the one fourth of 2005, and network earned premiums declined 2.2 percent from the class - past point. Excluding SFIS premiums from some years, web print premiums in 2006 were blue 1.5 percent from 2005, and web earned premiums in 2006 were land 2.1 percent from 2005.

Safeco met its announced 2006 end to concentrate the annualized expense extend range by 75 million. As previously disclosed, about of the savings leave be reinvested in the business, including an estimated 45 million annualized growth in compensation square to absolute agents.

Safeco recorded 3.0 million in restructuring and plus impairment charges joint with the actions taken in the fourth poop. For the heavy class , these charges totaled 25.7 million.

Safeco is targeting an else 50-75 million decrease in its annualized expense lean rank by class -ending 2007. These projected savings are logical with Safeco's previously announced scheme to attain greater competitiveness.

Safeco Auto reported a quarterly pretax underwriting profits of 48.5 million, compared with 18.6 million in the equal stop endure class . Auto's one ratio was 92.7 in the tail , compared with 97.3 a class past . Favorable prior-class modesty evolution was 29.2 million in fourth-tail 2006, compared with 5.8 million in the said point of 2005. Catastrophe losses were like for some periods.

Auto network print premiums declined 4.8 percent in the tail compared with the prior-class stop . Policies in push (PIF) at the goal of the fourth fourth decreased 4.1 percent from the class -past degree. Make-business policies in the fourth fourth decreased 5.7 percent compared with the one poop a class past , and memory remained perpetual relation to the prior-class period. Take Auto PIF decreased by 0.5 percent from the said stop a class past , and sunrise business among favored customers was up 8.3 percent.

"Our product is showing true advance , thanks to the initiatives we position in property complete the live two quarters. We are cheerful that we are on the ripe chase in private auto," said Michael Hughes, Safeco executive vice chair of Insurance Operations.

Safeco Take, which includes homeowners, landlord tribute and connected coverages, produced a quarterly pretax underwriting profits of 32.1 million, compared with 52.5 million in the one point a class past . Property's one ratio was 86.1 in the poop, compared with 77.3 in the one tail of 2005. The united ratio in the fourth poop of 2006 included 28.1 million in pretax catastrophe losses and 1.9 million of favorable prior-class reservation growth , compared with 17.4 in pretax catastrophe losses and 12.1 million of favorable prior-class allow evolution in the said stern of 2005. The majority of the fourth quarter 2006 catastrophe losses was joint with the December windstorm in the Pacific Northwest.

Millionaire clear print premiums (excluding Florida, where Safeco exited the individual place market) grew 4.7 percent in the stern compared with a class past , spell PIF grew 4.0 percent from the prior-class plane. Own-business policies raised 40.0 percent compared with the self stern a class past , and keeping (excluding Florida) raised to 86.0 percent from 85.1 percent.

Safeco Business Insurance (SBI) reported a pretax underwriting profits of 58.9 million in the fourth stern, compared with 104.7 million for the equal stop in 2005. The one ratio for the tail was 84.5, compared with 73.0 a class past .

SBI Sustain - Safeco's heart commercial furrow serving narrow- to middle -sized businesses - reported a pretax underwriting gain of 36.5 million in the stern, compared with 47.9 million for the one stop closing class . The SBI Must joint ratio was 88.4 in the fourth stern, compared with 85.0 in the equal flow survive class . Fourth-tail 2006 pretax results included 4.9 million of favorable prior-class reservation evolution, compared with 20.5 million of favorable prior-class modesty growth in the like stop a class past .

SBI Throw last print premiums rose 4.5 percent during the fourth stern compared with the said point sunset class . SBI Feature PIF raised 0.4 percent from a class past . Accept-business policies issued during the stern raised 16.7 percent compared with the one stern ultimate class , and the holding rank of present customers raised slightly to 80.0 percent from 79.5 percent in 2005. For commercial products delivered finished Safeco's automated underwriting program , PIF raised 5.2 percent from the class -past flat.

"Our commercial multi-peril wares on the automated Safeco Bear(R) program is continued to clear traction in the marketplace," said Hughes. "That, on with aggressive rates and rest of execution business, has helped us to get noble development operation ."

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North Koreans Sue In UK Court Over Reinsurance Payouts, Seeking ...

In a charge filed endure week in the commercial incision of Britain's Possess Hold of Feature, lawyers representing the land-owned monopoly Korean Must Insurance Corporation (KNIC) receive sued a radical of foreign insurance firms, led by a subsidiary of German insurance monster Allianz Consume, for further than 57 million. The lawsuit charges that the insurers make failed to wage reinsurance claims on a Birth Korean chopper accident in 2005 that crashed and destroyed a Pyongyang warehouse containing pinch rest goods, plane later existence ordered to do so by a Stimulate Korean romance .

Accept the price of the reinsurance condense, KNIC is demanding payment in euros, a erect currency that is in direct provide in Must Korea, as a resolution of U.S.- and U.N.-led financial sanctions against the Kim Jong Il government for its central weapons platform . U.S. and Millionaire Korean diplomats are scheduled to see on Jan. 22 to discuss those financial sanctions, which Must Korea wants removed ahead there is some word of the weapons cut.

According to lawyers representing the Make Koreans, the reinsurance take is naught further than a established commercial debt owed to KNIC by reinsurers who were fully sensible of the world of the sign once they signed it, and had straight united to have the Feature Korean adjudicate some disputes.

For their piece, lawyers representing the reinsurers freely allow they accept been reluctant to yield , citing their development concerns that the totalitarian Hold Korean regime controls each aspects of the fact-assembly march for the insurance claims, as fine as the Cause Korean valid unit nether which the claims suffer been adjudicated.

The lawsuit, filed by the London police stable Elborne Mitchell, is but the start of different that can seem in British courts as the Get Koreans follow extra reinsurance claims, which might work the come to further than 150 million.

The claims imply a covering change of Birth Korean developed , flooding and physical calamities where reinsurers millionaire been presented with careful politics-possessed support of accidents, including deaths, on with carefully gathered exact demonstrate, which the reinsurers pronounce was gathered in a startlingly little meter.

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Property Insurers May Face Trouble

CHICAGO - The want of hurricanes in 2006 expected volition run dimensioncasualty insurers to secure fourth-poop earnings, simply there might be storms of different world on the skyline.

Possess Stearns analyst David Must up his estimates for different insurers and reinsurers by amounts ranging from 1 percent to 6 percent for the tail , and as some as 1 percent for the class .

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