News Column

Fitch Publishes Property/Casualty Asset Risk Dashboard

August 22, 2014



CHICAGO--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Property/Casualty Asset Risk Dashboard

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=763408

Fitch Ratings has published a new Dashboard Report examining U.S. property/casualty (P/C) insurers' asset risk exposures.

The U.S. P/C Insurers Asset Risk Dashboard discusses the composition of Fitch's U.S. P/C insurer's investment portfolio, which has remained relatively consistent over time. Earnings from investments face further pressure as portfolio yields have declined by over 100 basis points (bps) since 2007, to 3.4% in 2013.

Risk asset holdings have increased to 29% of net invested assets in 2013, from 21% in 2009, but more than half of this change is tied to the appreciation of equity values, rather than new risk asset purchases or a meaningful shift in asset allocation.

The report provides a breakdown by type of investment for the industry from 2009 to 2013, as well as for the 10 companies with the highest allocation to risk assets. Common equities remain the most prominent risk asset held.

The report also looks at the insurers with the largest allocation to Schedule BA assets (including hedge funds and private equities as well as certain affiliated investments) and identifies the five largest holders of hedge funds and private equities (alternative investments).

Factors that may lead to future marginally adjusted asset allocations include wider usage of more sophisticated asset modeling, outsourcing to professional asset managers, and competitive pressures to generate higher returns.

The 'Property/Casualty Asset Risk 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, Inc.

Martha M. Butler, CFA, +1-312-368-3191

Senior Director

Fitch Ratings, Inc.

70 West Madison St.

Chicago, IL 60602

or

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

Managing Director

or

Media Relations

Brian Bertsch, +1-212-908-0549

brian.bertsch@fitchratings.com

Source: Fitch Ratings


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