Second quarter reports have begun to filter into the news. While most reinsurance companies are still struggling on the investment side, underwriting results still seem to be profitable. Rates for the July 1 renewals are either flat or rising. Premiums have been increasing in most lines of business.

On the insurance side, insurance companies also continue to struggle with their investment returns but are having more problems on the underwriting side. Rates have been flat or declining. Some insurance companies are reporting an increase in net catastrophe losses in the First Half while reinsurance companies are reporting lower than expected catastrophe losses. This would appear to be the usual result of primary companies increasing their retentions in an effort to reduce their ceded reinsurance premiums.