CHICAGO--(BUSINESS WIRE)--Market share in the U.S. property/casualty (P/C) insurance market tends to change slowly as leading large writers have defendable market positions and regulatory and capital requirements reduce the potential for newer entrants to grow rapidly, according to Fitch Ratings "U.S. Property/Casualty Insurer Market Share" special report.
Record acquisition activity in 2015 facilitated positional changes in several markets, particularly reinsurance and U.S. primary commercial lines. The most notable recent transaction included the acquisition by Ace Limited of The Chubb Corporation to form Chubb Limited, which is now the seventh-largest U.S. insurer.
"The Chubb Limited transaction, which closed in January 2016, has a more meaningful effect on market rankings," said James Auden, Managing Director, Fitch Ratings. Looking at pro forma combined direct premiums, the new entity is the seventh-largest insurer based on industry direct premium volume and the second largest based on commercial lines premiums, approaching the level of perennial market leader American International Group, Inc. (AIG).
While insurers absorb recent acquisitions, the potential remains for additional near-term M&A activity. While a combination of two top-20 underwriters is not expected, acquisitions of smaller companies are more likely, particularly among specialty primary writers and reinsurers. Interest in the U.S. P/C market from foreign-owned insurers is also likely to continue in the near term.
The full report "U.S. Property/Casualty Insurer Market Share" is available by clicking on the link below.
Additional information is available at 'www.fitchratings.com'.
U.S. Property/Casualty Insurer Market Share (Recent Acquisitions Affect Rankings)