Home Credit Ratings and Research Fitch Research

U.S. Property/Casualty Insurance Profit Fundamentals (Factors Point to Future ROE Deterioration)

Published Mar 03, 2015

5 pages (3062 words) — Published Mar 03, 2015

Price US$ 999.00 | Buy this Report Now

About This Report

Brief Excerpt:

... (P/C) insurers generated underwriting profits in the last two years. Sustaining this underwriting performance is pressured by heightened price competition and diminished loss reserve strength that will reduce earnings benefits from favorable prior-period development. The industry statutory return on surplus (ROS) is forecast to decline to 6.5% in 2015 from 8.1% in 2014. Investment Earnings Pressure: Investment yields declined by more than 100 bps in the last decade as maturing assets were replaced with considerably lower yielding instruments in a prolonged low interest rate environment. Investment income for insurers is anticipated to further decline in 2015. Property/Casualty Profit Fundamentals: The two drivers of profitability and ROE for U.S. property/casualty (P/C) insurers are underwriting and investments. Underwriting returns are a function of underwriting profit and loss margins and operating leverage (premiums/equity). The investment...

Report Type:

Special Report

Format:

PDF

Macro-Prudential Risk Monitor - February – 2015/03/03 – US$ 999.00

Latin America Recovery Models - Third Quarter 2014 – 2015/03/02 – US$ 999.00

Latin America Leveraged Finance Stats Quarterly (Fourth-Quarter Review) – 2015/03/02 – US$ 999.00

Structured Finance Progress Report: European Consumer ABS – 2015/03/02 – US$ 999.00

Russian Corporate Liquidity 2015 – 2015/03/02 – US$ 999.00

Afore Invercap, S.A. de C.V. - Familia de Siefores – 2015/03/02 – US$ 999.00

Auto ABS Index - Australia: The Dinkum ABS Index - 4Q14 - Excel File – 2015/03/03 – US$ 550.00

Auto ABS Index - Australia: The Dinkum ABS Index - 4Q14 – 2015/03/03 – US$ 550.00

Mortgage Market Index - Portugal – 2015/03/03 – US$ 550.00

Credit at a Glance – Asia Corporates - March 2015 – 2015/03/03 – US$ 350.00

More from Fitch Research

Fitch Research—Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings has grown rapidly during the past decade gaining market presence throughout the world and across all fixed income markets.

About the Author

Cite this Report


MLA:	Fitch Research. "U.S. Property/Casualty Insurance Profit Fundamentals (Factors Point to Future ROE Deterioration)" Mar 03, 2015. Alacra Store. May 18, 2025. <http://www.alacrastore.com/fitch-credit-research/U-S-Property-Casualty-Insurance-Profit-Fundamentals-Factors-Point-to-Future-ROE-Deterioration-862373_report_frame>

APA:	Fitch Research. (). U.S. Property/Casualty Insurance Profit Fundamentals (Factors Point to Future ROE Deterioration) Mar 03, 2015. New York, NY: Alacra Store. Retrieved May 18, 2025 from <http://www.alacrastore.com/fitch-credit-research/U-S-Property-Casualty-Insurance-Profit-Fundamentals-Factors-Point-to-Future-ROE-Deterioration-862373_report_frame>

US$ 999.00

$ £ €

Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

Example Report

Click to View Sample Report

More Research

Search all our Credit Research from one place.