Fitch Ratings News

Chronic Commercial Auto Insurance Underwriting Losses to Continue in 2019: Fitch

U.S. property/casualty insurers continue to face substantial underwriting losses on commercial automobile insurance and, following a statutory combined ratio of 108% in 2018, the segment is poised for a ninth consecutive year of underwriting losses in 2019, according to Fitch …

Insurer Innovation Comes Under the Rating Agency Microscope

Underway for some time now, the disruption of the insurance industry has moved into a new phase, following the announcement by A.M. Best that it may soon begin scoring insurers’ innovation efforts. Journalist Russ Banham spoke with ratings agencies, thought …

Workers’ Comp Underwriting Looks Strong for 2019 But Rates Are Dropping: Fitch

The workers’ compensation market is on track for a fifth consecutive year of underwriting profits in 2019 despite recent weakening in market fundamentals. According to a Fitch Ratings report, the industry’s statutory combined ratio fell to 86% in 2018, and …

Fitch Downgrades Ratings of Alabama-Based ProAssurance’s HoldCo; Affirms IFS Ratings

Fitch Ratings has affirmed the Insurer Financial Strength (IFS) ratings of Birmingham, Ala.-based ProAssurance Corporation’s (PRA) subsidiaries at ‘A’ and downgraded its senior unsecured debt to ‘BBB’ from ‘BBB+’ and its Issuer Default Rating (IDR) to ‘BBB+’ from ‘A-‘. The …

Fitch Upgrades Mitsui Sumitomo Insurance to ‘A+’

Fitch Ratings has upgraded the insurer financial strength (IFS) ratings of Japanese insurer Mitsui Sumitomo Insurance to “A+” (Strong) from “A”. Fitch also affirmed MSI’s issuer default rating (IDR) of “A” and the rating on its subordinated debt at “A-“. …

Tokio Marine’s Sale of Reinsurance Units to Boost Operational Efficiency: Fitch

Tokio Marine Holdings Inc.’s (TMHD) sale of two European reinsurance subsidiaries is likely to streamline its holdings and boost operational efficiency in the group’s underwriting businesses, Fitch Ratings said. RenaissanceRe Holdings is buying Tokio Millennium Re AG (TMR) and Tokio …

Some UK Insurers May Be Forced to Adjust Motor, Home Insurance Prices: Fitch

Some UK insurers may be forced to change how they set their prices for motor and home insurance as a result of a regulatory investigation next year, according to Fitch Ratings. Insurers have been accused of overcharging customers who do …

Market Changes Not Expected From Hurricane Michael; Florida Insurers ‘Heavily’ Reinsured

Losses to the insurance industry from Hurricane Michael, a Category 4 storm that hit the Florida Panhandle before continuing a path of destruction through several other Southeast states, will be substantial but not enough to cause problems for insurers or …

P/C Insurance Industry Delivered Improved Results in First Half

Mid-year results for U.S. property/casualty insurers and reinsurers show they are on the mend following a trying 2017, according to Fitch Ratings. Operating performance moderately improved for P/C (re)insurers during the first half of the year thanks to improved core …

Fitch Sees Small Profit But Still Negative on U.S. Commercial Lines Outlook

After a tumultuous 2017, the U.S. commercial lines market should eke out a small underwriting profit in 2018 assuming catastrophe losses return to more historical norms, Fitch Ratings said in a new report. Still, Fitch is maintaining a negative sector …