November 8, 2012 / 3:38 PM / 5 years ago

TEXT - Fitch on U.S. insurers post-Sandy

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Hurricane Sandy — Sensitivity Analysis of Insured Loss Scenarios here Nov 8 - Fitch Ratings has published an updated analysis of potential affects for the U.S. insurance industry following losses incurred from Hurricane Sandy. Catastrophe modeling firms have made preliminary estimates ranging from a $10 - $20 billion insured loss from Sandy. Since the ultimate level of insured losses from Sandy remains uncertain, Fitch analyzed several hypothetical loss scenarios for both the industry and individual insurers based on direct premium business mix and market share in affected states to develop loss projections. Fitch's analysis includes a more remote severe scenario of a $40 billion insured loss, which would approach Hurricane Katrina loss levels. Fitch emphasizes the range of loss scenarios assessed was done for purposes of sensitivity analysis only, and the range does not represent a Fitch forecast of insured losses. This exercise shows that the industry capital position could withstand a more severe loss scenario and would still likely generate a statutory net profit in 2012. The property/casualty insurance market is experiencing broad improvement in insurance premium rates across most segments. Based on Fitch's sensitivity analysis, Hurricane Sandy is not likely to tip the balance to a hard property market, but is more likely to promote continuation of favorable pricing trends in 2013, particularly in U.S. property markets. Fitch does not anticipate material rating changes for its rated universe due to losses from Hurricane Sandy. Fitch estimates insurers with the largest potential insured losses from this event include: State Farm Mutual Group, Allstate Corporation, Travelers Group, Liberty Mutual Insurance Group, and The Chubb Corporation. Fitch will host a teleconference on Thursday, Nov. 8 at 11 a.m. ET to discuss the effects of Hurricane Sandy on the U.S. insurance industry, specifically the property and casualty (P&C) and reinsurance segments. Teleconference Details: -- Date and Time: Thursday, Nov. 8, 11 a.m. ET -- Dial-In: +1-877-467-8597 (U.S./Canada) or +1-706-643-6296 -- Conference ID: #68782449 -- Call Leader: James Auden There will be an opportunity for Q&A following the analysts' remarks. The full report 'Hurricane Sandy: Sensitivity Analysis of Insured Loss Scenarios' is available at 'www.fitchratings.com.' (Caryn Trokie, New York Ratings Unit)

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