|[June 12, 2014]
Fitch Releases Updated Report on 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 reflects
statutory dividend capacity for 2014 based upon yearend 2013 statutory
The report provides insight into trends in non-extraordinary dividend
capacity of insurance operating companies over the past several years in
addition to expectations for 2014. 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 dividends
For Fitch's universe of life insurance companies, excluding pure mutual
insurance organizations, statutory dividend capacity increased
approximately 19% in 2014, to $24.3 billion, following a 36% increase in
While the increase in statutory dividend capacity in 2013 led to a
significant increase in statutory interest coverage in that year,
capacity is not expected to change significantly in 2014 for the group
of companies used in the study, despite another strong increase in
statutory dividend capacity for the industry as a whole. For the 13
large, publicly held life insurance companies used in the study, average
statutory interest coverage is expected to be approximately 3.3 times
(x) in 2014, down modestly from approximately 3.4 times (x) in 2013.
The report 'U.S. Life Insurance Statutory Dividend Capacity' i
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 (Improved Statutory Dividend Capacity a Credit
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