An article pubished by SNL Financial this past week summarized the 2008 results for the P&C industry.Three dynamics drove the negative results – after-tax realized capital losses, declining net written premiums and a net underwriting loss. The overall combined ratio for the year of the 2,200 companies included in the data was 102.7%. In the fourth quarter, net written premiums declined 2.4%.This puts a number on the forces at work described in the previous blog posting “Ebb and Flow in Property Casualty”.

Look for these forces to continue into the results for the next few quarters. If equities recover, capital losses might be mitigated, but the loss and premium trends will continue.