The U.S. property/casualty industry's net income after taxes fell more than 50 percent to $15.9 billion in the first half of 2008 on a combination of deteriorating underwriting results and declining investment returns. As a result, the U.S. property/casualty industry's annualized after-tax return on equity (return on surplus) -- which measures overall after-tax profitability from underwriting and investment activity -- fell to 9.5 percent for the 12 months ended June 30, 2008, from 14.2 percent for the 12 months ended June 30, 2007.

Net premiums written declined approximately $1.6 billion, or 0.7 percent, to $224.3 billion through the first half of 2008 from $225.9 billion during the same period of 2007.