News Column

Fitch Publishes Directors and Officers Liability Insurance Dashboard

June 27, 2014



NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Directors and Officers Liability Insurance Dashboard

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751088

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 Willis North America, Inc. suggests that Public company D&O prices appear to be flattening on primary layers, while declining for excess and Side A coverage. Pricing is firmer for private companies and not-for-profit entities.

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'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

James B. Auden, CFA, +1 312-368-3146

Managing Director

Fitch Ratings, Inc.

70 West Madison Street

Chicago, IL 60602

or

Media Relations:

Brian Bertsch, +1 212-908-0549

brian.bertsch@fitchratings.com

Source: Fitch Ratings


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Business Wire