|[February 21, 2014]
Fitch Report: Homeowners' Insurance Underwriting Trends Greatly Improve
CHICAGO --(Business Wire)--
In 2013, the homeowners' insurance sector will generate its first
statutory underwriting profit since 2007, reflecting a sharp decline in
natural catastrophe losses, benefits from increasing premium rates and
other underwriting actions, according to a new Fitch Ratings' report.
In the new special report, Fitch examined GAAP homeowners results from
2011-2013 for four large, publicly-traded homeowners' insurers, serving
as a leading indicator of industry wide results for 2013 that are not
yet available. The report group includes the following companies: The
Allstate Corp. (Allstate), Chubb Group of Insurance Companies (Chubb),
The Hartford Financial Services Group, Inc. (Hartford), and The
Travelers Companies, Inc. (Travelers).
This group of companies reported an aggregate homeowners' combined ratio
of 79.6% for full year 2013, substantially improved from 92.7% in 2012.
The favorable results are largely due to a sharp decline in natural
catastrophe losses, which represented 12.2% of earned premiums in 2013
versus 22.8% in 2012.
The group aggregate combined ratio, excluding catastrophe losses, was
67.4% in 2013, nearly 10 points better than the 2011 result, reflecting
rising premium rates and stricter underwriting standards. Fitch expects
homeowners' insurance prices to flatten, but still trend positively in
2014, promoting further ex-cat underwriting improvement.
The report 'Homeowners' Insurance Underwriting Trends - enign
Catastrophe Losses and Higher Prices Boost Results' is available on
Fitch's website at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Homeowners Insurance
Underwriting Trends (Benign Catastrophe Losses and Higher Prices Boost
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