Fitch Ratings has issued a sector-specific special report describing the
credit factors the agency uses to analyze the U.S. Property/Casualty
These sector-specific credit factors supplement the global master
criteria 'Insurance Rating Methodology', dated Sept. 22, 2011, which
details key elements of criteria that influence Fitch's core fundamental
credit analysis of insurance companies and groups. This report is
available at 'www.fitchratings.com'.
Consistent with the global master insurance rating criteria, companies
in the Property/Casualty Insurance sector are evaluated considering
various qualitative and quantitative credit factors, including but not
limited to: industry profile and operating environment, market position
and size/scale, corporate governance, capitalization and leverage,
financial performance and earnings, and liquidity.
In its new special report, Fitch has placed the various building blocks
used to formulate its ratings within typical ranges to increase the
transparency of its analysis. The report includes various median
financial ratios by rating category, as well as charts that demonstrate
how key qualitative factors can impact a typical rating range.
Ratings in U.S. property/casualty insurance typically range between the
'AAA' through 'BBB' category for insurer financial strength (IFS)
ratings and between 'AA' and 'BB' for holding company unsecured senior
debt ratings. Key property/casualty industry risk factors include
cyclical pricing, intense market competition, pricing and reserving
uncertainty, investment risk tied to fixed-income and equity holdings,
catastrophe loss exposures, and regulatory issues.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--Insurance Rating Methodology' (Sept. 22, 2011).
Applicable Criteria and Related Research: Property/Casualty Insurance
(U.S.) -- Sector Credit Factors
Insurance Rating Methodology
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Fitch RatingsJames B. Auden, CFAManaging Director+1-312-368-3146Fitch,
Inc.70 West Madison St.Chicago, IL 60602orGregory
W. DickersonDirector+1-212-908-0220orGerald B.
Relations:Brian Bertsch, +1-212-908-0549 (New York)firstname.lastname@example.org
Source: Fitch Ratings