|[October 18, 2013]
Fitch Releases Report on U.S. Life Insurer Statutory Dividend Capacity
CHICAGO --(Business Wire)--
Fitch Ratings has published a report examining statutory dividend
capacity in the U.S. life insurance industry.
The report provides insight into trends in non-extraordinary dividend
capacity of insurance operating companies over the past several years
and expectations for the remainder of 2013. The report also examines the
extent to which debt service within the industry has been covered by
both non-extraordinary statutory dividends and actual statutory
For Fitch's rated universe of life insurance companies, excluding pure
mutual insurance organizations, statutory dividend capacity increased
approximately 36% in 2013, to $19.6 billion. As a result of this
increased statutory dividend capacity, Fitch expects average statutory
interest coverage to increase significantly for full year 2013. For the
13 large, publicly held life insurance companies used in the study,
average statutory interest coverage is expected to increase to
approximately 3.5 times (x) in 2013, from 2.6x in 2012.
The report 'U.S. Life Insurance Statutory Dividend Capacity' is
available on the Fitch web site at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Life Insurance Statutory
Dividend Capacity (Statutory Dividend Capacity Improves to Produce Solid
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