ANNUAL RATE OF RETURN: NET INCOME AFTER TAXES AS A PERCENT OF EQUITY, 1999-2008
  Property/casualty
insurance
  Selected other industries (1)  
Year Statutory
accounting (2)
  
GAAP accounting (3) Life/health insurance (4) Diversified financial (5) Commercial banks Electric
and gas utilities
Fortune 500
 combined
industrials
 and service (6)
1999 6.9% 6.0% 13.0% 21.0% 18.0% 11.9% 15.2%
2000 6.8 5.9 10.0 21.3 16.7 11.8 14.6
2001 -1.8 -1.2 7.0 19.3 14.0 10.5 10.4
2002 3.3 2.1 1.0 19.5 17.3 7.9 10.2
2003 8.5 8.8 9.0 19.5 14.9 10.5 12.6
2004 9.3 9.4 11.0 15.0 15.5 10.5 13.9
2005 10.7 9.6 13.0 15.0 16.0 10.0 14.9
2006 13.3 12.7 12.0 15.0 15.0 11.0 15.4
2007 11.8 10.9 11.0 -1.0 11.0 11.0 15.2
2008 1.0  0.3  1.0 8.0 3.0 13.0 13.1

(1) Return on equity on a GAAP accounting basis, Fortune.
(2) Net income after taxes, divided by year-end policyholders’ surplus. Calculated by the Insurance Information Institute from Highline Data, LLC. Statutory accounting is used by insurers when preparing the Annual Statements they submit to regulators.
(3) Return on average net worth, ISO.
(4) Return on equity on a GAAP accounting basis, Fortune. Combined stock and mutual companies, calculated by the Insurance Information Institute.
(5) Companies whose major source of revenue comes from providing diversified financial services. These companies are not specifically chartered as insurance companies, banks or savings institutions, or brokerage or securities companies, but they may earn revenue from these sources.
(6) Fortune 500 Combined Industrial and Service Businesses median return on equity.

Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.; ISO; Fortune.