In the new special report, Fitch examined GAAP homeowners results from 2011-2013 for four large, publicly-traded homeowners' insurers, serving as a leading indicator of industry wide results for 2013 that are not yet available. The report group includes the following companies: The Allstate Corp. (Allstate),
This group of companies reported an aggregate homeowners' combined ratio of 79.6% for full year 2013, substantially improved from 92.7% in 2012. The favorable results are largely due to a sharp decline in natural catastrophe losses, which represented 12.2% of earned premiums in 2013 versus 22.8% in 2012.
The group aggregate combined ratio, excluding catastrophe losses, was 67.4% in 2013, nearly 10 points better than the 2011 result, reflecting rising premium rates and stricter underwriting standards. Fitch expects homeowners' insurance prices to flatten, but still trend positively in 2014, promoting further ex-cat underwriting improvement.
The report 'Homeowners' Insurance Underwriting Trends - Benign Catastrophe Losses and Higher Prices Boost Results' is available on Fitch's website at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
James B. Auden, CFA
Source: Fitch Ratings
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