Homeowners results were near breakeven in 2000 compared with profitable results in 1999 as a decrease in catastrophe losses was more than offset by an unusually high number of large non-catastrophe losses in 2000, particularly in the first half of the year. Homeowners results in 1999 were less profitable than in 1998 due to an increase in both catastrophe losses and non-catastrophe losses. Results in 1999 were also adversely affected by two large losses aggregating $15 million, net of reinsurance. Catastrophe losses represented 7.3 percentage points of the loss ratio for this class in 2000 compared with 11.8 percentage points in 1999 and 8.5 percentage points in 1998. Homeowners results were unprofitable in Europe in each of the past three years as rates are inadequate and we are still building the critical mass necessary to absorb the costs of operating that franchise.
Our other commercial classes produced unprofitable results in 2000 compared with profitable results in 1999 and near-breakeven results in 1998. Our surety business produced highly profitable results in each of the past three years. However, such results were less profitable in 2000 due primarily to one $15 million loss, net of reinsurance. Aviation results were highly unprofitable in each of the past three years.
Loss reserves, net of reinsurance recoverable, increased by $302 million or 3% in 2000 compared with $699 million or 8% in 1999. The increase in 1999 included $606 million of net reserves assumed upon the acquisition of Executive Risk. The 1999 increase would have been $549 million greater except that loss reserves were reduced by payments in that amount during the year related to the settlement of asbestos-related claims against Fibreboard Corporation. Excluding the Executive Risk reserves
Hazardous waste sites are another significant potential exposure. Under the federal "Superfund" law and similar state statutes, when potentially responsible parties (PRPs) fail to handle the clean-up at a site, regulators have the work done and then attempt to establish legal liability against the PRPs. Most PRPs named to date are parties who have been generators, transporters, past or present land owners or past or present site operators. The PRPs, with proper government authorization in many instances, disposed of toxic materials at a waste dump site or transported the materials to the site. Most sites have multiple PRPs. Insurance policies issued to PRPs were not intended to cover the clean-up costs of pollution and, in many cases, did not intend to cover the pollution itself. Pollution was not a recognized hazard at the time many of these policies were written. In more recent years, however, policies specifically exclude such exposures.
with previous years. New cash available in 1999 was not affected by the Fibreboard-related payments during the year since such payments were made from an escrow account that was funded in 1993.
In March 1997, the Board of Directors authorized the repurchase of up to 17,500,000 shares of common stock. In July 1998, the Board of Directors authorized the repurchase of up to an additional 12,500,000 shares. Through December 31, 2000, the Corporation had repurchased 24,375,000 shares under the 1997 and 1998 authorizations. As of December 31, 2000, 5,625,000 shares remained under the current share repurchase authorizations. The Corporation repurchased 3,783,400 shares in open-market transactions in 2000 at a cost of $242 million, 2,596,700 shares in 1999 at a cost of $145 million and 8,203,000 shares in 1998 at a cost of $609 million.