Strong revenue growth for publicly traded U.S. insurance brokers is expected for 2020 given near peak level organic growth and favorable U.S. commercial lines insurance pricing trends. Further, margins remain consistent with investment-grade ratings and are expected to be stable-to-modestly improving in 2020, according to Fitch Ratings’ 2020 U.S. Insurance Broker Outlook report. “Fitch forecasts… Continue reading Market Conditions Promote Continued Favorable Margins for U.S. Insurance Brokers in 2020: Fitch
Tag: Fitch Ratings
North American P/C Insurers See Steady Results at Mid-Year 2019
Higher investment income and modestly weaker calendar-year underwriting margins kept operating performance for North American property/casualty (P/C) insurers steady during 1H19, according to a new report by Fitch Ratings. Compiling GAAP midyear results for a group of 47 companies reveals a six months aggregate combined ratio of 94.7% relatively unchanged from 94.3% for the same… Continue reading North American P/C Insurers See Steady Results at Mid-Year 2019
Commercial Auto Insurance Underwriting Losses to Continue in 2019: Fitch
U.S. property/casualty (p/c) insurers continue to face substantial underwriting losses on commercial automobile insurance, according to Fitch Ratings in a new special report. Following a statutory combined ratio of 108% in 2018, the segment is poised for a ninth consecutive year of underwriting losses in 2019, with only moderate results improvement anticipated. Despite repeated underwriting… Continue reading Commercial Auto Insurance Underwriting Losses to Continue in 2019: Fitch
Inadequate Pricing & Market Disruption to Push Rate Increases into 2020: Fitch
Reinsurance rate increases are expected to continue into the 2020 renewals due to ongoing disruption in the market and inadequate pricing levels, according to Fitch Ratings. Fitch noted that reinsurance pricing turned decidedly positive at the mid-year 2019 renewals, following disappointing flat and generally stable rates at January. Momentum has largely been supported by a… Continue reading Inadequate Pricing & Market Disruption to Push Rate Increases into 2020: Fitch
Workers’ Comp on Track for Fifth Year of Underwriting Profits: Fitch Ratings
The U.S. workers’ compensation market is on track for a fifth consecutive year of underwriting profits in 2019 despite recent weakening in market fundamentals, according to Fitch Ratings. The industry’s statutory combined ratio fell to 86% in 2018 and has averaged 93% annually since 2015. Over the past five years, most large underwriters posted favorable… Continue reading Workers’ Comp on Track for Fifth Year of Underwriting Profits: Fitch Ratings
Cyber Insurance Growth Slows, Market Remains Untested: Fitch
The cyber insurance market remains a source of growth for U.S. property/casualty insurers; however, that growth is slowing, according to Fitch Ratings. The industry’s total direct written cyber premiums grew 8% in 2018 to $2 billion, down from 37% growth in 2017. “After several years of brisk growth, U.S. cyber insurance segment revenue moderated in… Continue reading Cyber Insurance Growth Slows, Market Remains Untested: Fitch
U.S. P&C Insurers’ Financial Leverage Remains Stable: Fitch
U.S property and casualty (P&C) insurers’ financial leverage remained stable year-on-year, according to Fitch Ratings, who recorded the sector’s aggregate financial leverage ratio (FLR) at ‘A-‘. Fitch explained that the ratio implied debt rating guidelines at 22.6% for year-end 2018, which was down minimally from 22.9% at year-end 2017. “In the medium term, Fitch expects… Continue reading U.S. P&C Insurers’ Financial Leverage Remains Stable: Fitch
Fitch Ratings: U.S. P/C Industry 2018 Performance Improves on Return to Underwriting Profit
The U.S. property/casualty (P/C) industry returned to a modest statutory underwriting profit in 2018 following two consecutive years of combined ratios above 100% as catastrophe losses slowed, premium growth accelerated and results were favorable in several key product segments, according to Fitch Ratings in a new special report. The industry logged a statutory combined ratio… Continue reading Fitch Ratings: U.S. P/C Industry 2018 Performance Improves on Return to Underwriting Profit