...Credit Metrics Largely Within Guidelines: The U.S. property/casualty (P/C) insurance industry continues to maintain balance sheet strength and adequate debt-servicing capacity that remains within rating expectations. This report analyzes key holding company financial factors of P/C insurance organizations in Fitch's debt rating universe, examining changes in traditional financial leverage, fixed-charge coverage and liquidity from insurance subsidiary dividend capacity. Stronger Fixed-Charge Coverage: P/C insurers' operating performance improved dramatically in 2013 due to lower catastrophe-related losses and a favorable pricing environment in many product lines. Fixed-charge coverage, excluding investment gains and losses, improved in 2013 to 8.7x from 6.1x in 2012 and 4.3x in 2011. This is consistent with a `BBB' debt rating median. Coverage Expected to Weaken in 2014: Operating EBIT and fixed-charge coverage ratios could deteriorate in 2014, as pricing gains continue to slow in primary...
