CHICAGO--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Property/Casualty Loss Reserve Development
Earnings for the U.S. property/casualty insurance industry will benefit from significant favorable loss reserve development in 2013, despite several headline making adverse development charges from individual insurers during the year, according to a Fitch Ratings special report: 'Property/Casualty Loss Reserve Development -- Five Insurers Carry Trend'.
In the report Fitch reviews loss reserve experience for 100 of the top U.S. P/C insurers, representing approximately 88% of industry aggregate loss reserves. Key findings show that while full year 2013 reserve development will modestly exceed 2012 levels, the breadth of favorable reserve actions across companies has declined over time.
Five insurers accounted for approximately three-quarters of the favorable reserve development during the first nine months of 2013. Fitch's analysis also reveals fewer companies in total with favorable reserve development, reduced levels of favorable reserve development among leading companies, and modestly higher levels of unfavorable reserve development relative to beginning reserves for the worst performing companies.
Fitch believes that this pattern is indicative of a weakening in the industry reserve position over time, promoting an expectation for more modest favorable reserve development reported in 2014 for the P/C insurance industry.
The report 'Property/Casualty Loss Reserve Development -- Five Insurers Carry Trend' is available on Fitch's website at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.