These graphics present both detailed and net quarterly cash flow data for U.S. Property & Casualty insurers as of June 30, 2011. Operations have suffered from the impact of the many catastrophes (tornadoes, floods and wild fires) experienced during the first half of the year contributing only $1.3 billion in the 2nd quarter. Investments provided almost $2.7 billion in the 2nd quarter but is expected to turn negative in 3rd quarter reflecting the recent difficult investment markets. Financing activities drained cash of nearly $5.8 billion in the 2nd quarter including dividends to stockholders of almost $5.4 billion.
Thus the net cash flow as of the 2nd quarter was a negative $1.8 billion. More importantly is that the industry has experienced negative cash flow in 6 of the last 10 quarters, a sure indication that the market is about to turn.