Fitch Releases Report on Life Insurer Statutory Dividend Capacity

CHICAGO--()--Fitch Ratings has released a special report examining statutory dividend capacity in the US life insurance industry. The report reflects statutory dividend capacity for 2015 based upon yearend 2014 statutory financial statement information.

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 2015. 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 paid.

For Fitch's universe of life insurance companies, excluding pure mutual insurance organizations, statutory dividend capacity declined by a modest 0.5% in 2015 after increasing 18% in 2014 and 33% in 2013. Notwithstanding the lack of growth in capacity, Fitch considers the absolute level to be strong.

Despite flat dividend capacity for the broader life insurance sector, for the 14 large, publicly held life insurance companies used in the study of statutory interest coverage, dividend capacity increased significantly for 2015. As a result, average statutory interest coverage is for this group is expected to be approximately 4.1 times (x) in 2015, up from approximately 3.3x in 2014.

The report '2015 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'.

2015 U.S. Life Insurance Statutory Dividend Capacity (Statutory Dividend Capacity Remains Strong)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866353

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Contacts

Fitch Ratings
Bradley S. Ellis, CFA
Director
+1-312-368-2089
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Douglas Baker
Analyst
+1-312-368-3207
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Bradley S. Ellis, CFA
Director
+1-312-368-2089
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Douglas Baker
Analyst
+1-312-368-3207
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com