News Column

Fitch Publishes U.S. P/C Insurers FHLB Borrowing Dashboard

August 6, 2014



CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has published a new Dashboard Report examining U.S. property/casualty (P/C) insurers' borrowing activity from the Federal Home Loan Bank (FHLB) system.

The U.S. P/C Insurers FHLB Borrowing Dashboard discusses the recent growth in borrowings from the P/C sector, although use of the FHLB system has been more popular with life insurers. Membership in the FHLB system can enhance liquidity and financial flexibility, particularly for members with limited access to the capital markets. P/C sector members are typically mutual companies or have relatively small policyholders' surplus (PHS), although there are exceptions.

FHLB borrowings by P/C insurers grew almost 64% to $1.7 billion at Dec. 31, 2013. The report highlights the P/C sector insurance groups with outstanding loans. The ratio of borrowings to PHS for this group averages 7.3%.

The report also looks at capacity for additional borrowings, pledged collateral and pledged collateral to invested assets, which remains manageable at 3.8% for the companies included in the report.

The 'U.S. P/C Insurers FHLB Borrowing 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'.

Applicable Criteria and Related Research: U.S. P/C Insurers FHLB Borrowing Dashboard

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754493

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

Martha M. Butler, CFA

Senior Director

+1-312-368-3191

Fitch Ratings, Inc.

70 West Madison St.

Chicago, IL 60602

or

James B. Auden, CFA

Managing Director

+1-312-368-3146

or

Media Relations

Brian Bertsch, New York, +1-212-908-0549

brian.bertsch@fitchratings.com


Source: Fitch Ratings


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