Fitch Updates U.S. Title Insurance Industry Sector Credit Factors

CHICAGO--(BUSINESS WIRE)--Fitch Ratings today has updated and published its report titled 'U.S. Title Insurance Industry Sector Credit Factors'. Fitch notes that no ratings are expected to be affected by this updated report.

This updated report makes several changes to Fitch's Risk Adjusted Capital (RAC) ratio used to evaluate title insurance companies' capital. Specifically, Fitch has updated the model for: asset charges including adding an asset concentration factor, large loss and ceded reinsurance, geographic business concentration, and correlation assumptions.

A full review of the RAC model can be found in Appendix B of this special report, which is available by clicking on the link.

These sector-specific credit factors supplement the master criteria 'Insurance Rating Methodology', dated Jan. 11, 2013, which details Fitch's overarching approach to rating insurance companies and is available at 'www.fitchratings.com'.

This report does not offer a formula to derive a notch-specific rating for U.S. title insurance companies. Such an approach is inconsistent with Fitch's master criteria for insurance, in which weighting of different credit factors is dynamic, and based on the judgment of a rating committee.

The special report 'U.S. Title Insurance Industry Sector Credit Factors' dated March 28, 2012, has been replaced.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Methodology' (Jan. 11, 2013)

Applicable Criteria and Related Research: Title Insurance (U.S.) -- Sector Credit Factors

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698311

Insurance Rating Methodology - Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698731

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