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Fitch Raises Outlook for P/C Industry to "Stable"

Source: Fitch Ratings

Posted on 09 Sep 2010

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On Tuesday Fitch Ratings upped its sector outlook on the U.S. property and casualty insurance industry to "stable" from "negative" for both the commercial and personal sectors. Fitch analysts said most insurer ratings will be affirmed as they are reviewed over the next 12 to 18 months.

The change in outlook reflects Fitch's view that "the industry withstood the recent financial crisis reasonably well, particularly in comparison with other financial services sectors."

Property and casualty insurers lost significant income in 2008 but benefited from the investment market recovery last year, Fitch said. Combined with improvements in underwriting performance, that helped the industry return to previous strong capital levels, the ratings agency said. Companies also have significant unrealized investment gains on their books.