ANNUAL RATE OF RETURN: NET INCOME AFTER TAXES AS A PERCENT OF EQUITY, 2002-2011
  Property/casualty
insurance
Life/health Selected other industries (1)  
Year Statutory
accounting (2)
GAAP
accounting (3)
Life/health
insurance (4)
Healthcare
insurance (5)
Diversified
financial (6)
Commercial
banks
Electric
and gas
utilities
Fortune 500
combined
industrials
and service (7)
2002 1.1% 2.1% 1.0% NA 19.5% 17.3% 7.9% 10.2%
2003 9.5 8.8 9.0 NA 19.5 14.9 10.5 12.6
2004 10.7 9.4 11.0 NA 15.0 15.5 10.5 13.9
2005 10.8 9.6 13.0 16.2% 15.0 16.0 10.0 14.9
2006 14.4 12.7 12.0 19.0 15.0 15.0 11.0 15.4
2007 12.4 10.9 11.0 19.0 -1.0 11.0 11.0 15.2
2008 0.6 0.1 1.0 11.0 8.0 3.0 13.0 13.1
2009 5.9 5.0 4.0 14.0 9.0 4.0 9.0 10.5
2010 6.6 5.6 7.0 12.0 10.0 8.0 10.0 12.7
2011 3.4 2.7 8.0 15.0 12.0 8.0 10.0 14.5

(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 SNL Financial data. 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) Healthcare insurance and managed care, Fortune.
(6) 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.
(7) Fortune 500 Combined Industrial and Service Businesses median return on shareholders' equity.

NA=Data not available.

Source: SNL Financial LC; ISO, a Verisk Analytics company; Fortune.