_ap_ufes{"success":true,"siteUrl":"friableasbestos.com","urls":{"Home":"http://friableasbestos.com","Category":"http://friableasbestos.com/category/current-asbestos-news/","Archive":"http://friableasbestos.com/2015/04/","Post":"http://friableasbestos.com/asbestos-firms-ready-to-fight-silvers-slanted-legal-system/","Page":"http://friableasbestos.com/effect-asbestos-mesothelioma/","Nav_menu_item":"http://friableasbestos.com/69/"}}_ap_ufee

December 16, 2017

Fitch: Asbestos Reserve Deficiency Continues for U.S. Insurance Industry

CHICAGO–(BUSINESS WIRE)–

Fitch Ratings estimates industry asbestos reserves to be deficient by $2
billion to $8 billion at year-end 2011. Asbestos reserves make up

approximately 4% of total property/casualty industry reserves with
approximately 50% of reserves concentrated in five insurers.

In a new report, Fitch examines a range of loss scenarios and future
payments for asbestos losses up to an ultimate industry loss of $85
billion. Based on recent development experience and its latest analysis
of loss payment scenarios, Fitch’s target industry survival ratio is
11x-14x.

The reported industry survival ratio for asbestos liabilities increased
modestly to 10.3x in 2011 from 10.1x in 2010 and 9.9x in 2009,
indicating that incurred losses have expanded at a faster rate than paid
losses in recent years.

Fitch’s analysis reveals that the (re)insurance industry remains
strongly capitalized with the capacity to absorb future asbestos claims
without risk of material capital depletion. While Fitch does not
anticipate broad rating actions related to asbestos, the ratings of
individual companies could be adversely affected by the severity of
reserve deficiencies relative to capital.

The full report is available on the Fitch web site at ‘www.fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research: Asbestos Losses: Continued
Source of Reserve Deficiency

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695246

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.

Contact:

Fitch Ratings

Dafina M. Dunmore, CFA, +1-312-368-3136

Director

Fitch, Inc.

70 West Madison St.

Chicago, IL 60602

or

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

Managing Director

or

Media Relations:

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

Email:

brian.bertsch@fitchratings.com

Excerpt from: 

Fitch: Asbestos Reserve Deficiency Continues for U.S. Insurance Industry

Speak Your Mind

*