Fitch Ratings has published a Dashboard Report that discusses pricing trends, market dynamics and key drivers of recent results in the U.S. property/casualty directors and officers (D&O) liability insurance market.
The Directors and Officers Liability Insurance Dashboard reveals that results in the D&O insurance market were largely stable in 2013. The industry's direct loss ratio for D&O liability insurance rose slightly from the prior year to 49.8% from 48.2%. Relatively steady claims trends contributed to this underwriting performance.
Favorable loss reserve development trends continue. Statutory data for Other Liability - Claims Made (OLCM) business is a reasonable proxy for the D&O insurance segment. OLCM loss reserves developed favorably in each of the last five years, buoyed by strong results from hard market years (2004 - 2007). Recent accident years have developed moderately unfavorably but fears of larger losses emerging from the past economic recession and financial market disruption has not materialized.
Pricing momentum in D&O insurance is fading. A recent report by insurance broker
The ranks of leading U.S. D&O writers were little changed in 2013. D&O is a relatively concentrated insurance market segment, with the 10 largest U.S. writers accounting for nearly 70% of industry direct premiums. American International Group, Inc. expanded its leading market share slightly in 2013. XL Group plc maintained the second leading market position, followed by The Chubb Corporation.
The 'Directors and Officers Liability Insurance Dashboard' is available on Fitch's website at 'www.fitchratings.com' or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
James B. Auden, CFA, +1 312-368-3146
Source: Fitch Ratings
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