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Fitch: U.S. P&C Insurers Retaining More Premiums in Soft Market

Posted on 25 Oct 2010

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Fitch Ratings today released a Special Report that details its examination of U.S. property-casualty insurance companies' utilization of reinsurance.

In this report, Fitch analyzes U.S. property/casualty insurers' reinsurance usage and changes in reinsurance credit exposures over time, examining the extent to which the largest domestic insurers utilize ceded reinsurance. Fitch also evaluates reinsurance recoverable collection trends and the credit quality of the largest reinsurers. The report is based on data from statutory filings from the 50 largest property/casualty insurers.

Given insurance industry growth challenges associated with a soft pricing market and a prolonged economic downturn, property/casualty insurers continue to cede fewer premiums to reinsurers, even though reinsurers were less affected by the global economic crisis than other insurance and financial services sectors and have considerable underwriting capacity to write business.