{"id":1229,"date":"2025-12-08T13:00:08","date_gmt":"2025-12-08T14:00:08","guid":{"rendered":"http:\/\/goldanker.club\/?p=1229"},"modified":"2025-12-08T14:58:07","modified_gmt":"2025-12-08T14:58:07","slug":"fitch-maintains-neutral-outlook-for-us-pc-insurance-sector-amid-strong-profitability","status":"publish","type":"post","link":"http:\/\/goldanker.club\/index.php\/2025\/12\/08\/fitch-maintains-neutral-outlook-for-us-pc-insurance-sector-amid-strong-profitability\/","title":{"rendered":"Fitch maintains \u2018neutral\u2019 outlook for US P&C insurance sector amid strong profitability"},"content":{"rendered":"

Fitch Ratings maintains a \u2018neutral\u2019 fundamental sector outlook for the US property\/casualty (P&C) insurance sector in 2026, as well as for both commercial and personal lines.<\/p>\n

\"fitch-ratings-logo\"This assessment is based on the sector\u2019s solid starting position for the year, which is supported by strong overall statutory performance, continued favourable personal auto insurance results, a mild hurricane season, and higher reserve releases.<\/p>\n

Fitch expects the industry combined ratio to improve by nearly three percentage points in 2025, reaching 93.7%.<\/p>\n

The rating agency also forecasts an improvement in statutory net earnings compared to the previous year, after adjusting for unusual realised investment gains from Berkshire Hathaway.<\/p>\n

According to the report, industry performance is likely to remain stable in 2026, achieving a slightly lower underwriting profit with a combined ratio between 96% and 97%.<\/p>\n

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This stability will be underpinned by continued strong results in both personal and commercial lines, despite challenges that may limit top-line growth, Fitch stated.<\/p>\n

\u201cWe expect general stability across personal and commercial lines in 2026,\u201d said Senior Director Tana Marcom. \u201cBut macro risks\u2014including increasing competition, geopolitical uncertainty, slowing economic growth and a difficult legal environment\u2014could pose challenges for pricing discipline, reserve adequacy, and claims management.\u201d<\/p>\n

While declining interest rates are anticipated to modestly pressure net investment income, book yields are likely to remain strong. Fitch projects the adjusted industry return on surplus (ROS) at 10.1% in 2025 and 9.1% in 2026.<\/p>\n

Fitch reports that the rating outlook for US Property and Casualty (P&C) insurers is \u201coverwhelmingly\u201d Stable, accounting for 97% of the rated portfolio. This outlook reflects the expectation that most insurers will continue to perform within their rating sensitivities over the next year.<\/p>\n

The percentage of Positive Outlooks decreased from 2024, a result of two issuers being upgraded in 2025 after having a Positive Outlook in the previous year. Currently, no rated P&C insurers have a Negative Outlook.<\/p>\n

Fitch\u2019s P&C insurer rated universe remains in the \u2018A\u2019 and \u2018AA\u2019 categories for Insurer Financial Strength ratings, with almost two-thirds of individual ratings assigned between \u2018A\u2019 and \u2018AA\u2013\u2019. Individual rating levels remain highly stable, which Fitch expects to continue in 2026.<\/p>\n

Negative rating actions and Outlook changes have been limited since 2024, following several personal lines carriers receiving one-notch downgrades in 2023, the rating agency noted.<\/p>\n

Looking ahead, the report stated, market observers should observe several key themes defining the sector in 2026. US P&C\u2019s strong continued profitability and capital strength will be tested by softening rates and the ongoing need for price adequacy.<\/p>\n

Additionally, volatility from natural catastrophe events and the impact of litigation on reserve adequacy will remain as persistent concerns. Finally, stakeholders should anticipate a potential pickup in merger and acquisition (M&A) activity as carriers navigate this evolving landscape.<\/p>\n

The post Fitch maintains \u2018neutral\u2019 outlook for US P&C insurance sector amid strong profitability<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch Ratings maintains a \u2018neutral\u2019 fundamental sector outlook for the US property\/casualty (P&C) insurance sector…<\/p>\n","protected":false},"author":1,"featured_media":835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/posts\/1229"}],"collection":[{"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/comments?post=1229"}],"version-history":[{"count":3,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/posts\/1229\/revisions"}],"predecessor-version":[{"id":1232,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/posts\/1229\/revisions\/1232"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/media\/835"}],"wp:attachment":[{"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/media?parent=1229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/categories?post=1229"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/goldanker.club\/index.php\/wp-json\/wp\/v2\/tags?post=1229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}