Sepoy-logo
No Result
View All Result
Wednesday, February 8, 2023
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
No Result
View All Result
SEPOY.NET
No Result
View All Result
Home Business

Allstate, Progressive and more – how do they compare?

Nicholas by Nicholas
December 21, 2022
in Business
0
Allstate, Progressive and more – how do they compare?


Allstate, Progressive and more – how do they compare?

Credit ratings agency Fitch Ratings has just released its peer review of US personal line insurers. The study includes Allstate Insurance, Horace Mann Educators, Intact Financial, Mercury General, The Progressive Corporation, and Kemper Corporation.

Driving the results was what Fitch called a ‘sharp deterioration’ in personal auto liability from ongoing higher litigation costs as well as severity issues. The loss ratio moved 11 points higher to 75% from the first nine months of the previous year, with even the historically stable physical damage segment registering an 80% direct loss ratio for 9M2022. Fitch chalked the latter loss ratio to supply chain shortages, high used-car prices, and the tight labor market.

Homeowners’ loss ratio remained at high levels at 76% for 9M2022, similar to the previous year.

The Fitch Ratings peer review noted that risk-adjusted capitalization was the key credit factor for this peer group of personal lines insurers, highly influencing each company’s rating. Their capital adequacy as measured against Fitch Ratings’ ‘prism’ capital model ranged from ‘strong’ to ‘extremely strong’ and scored at or better than the insurer financial strength (IFS) rating, except for Progressive Corporation.

The peer review noted that among personal line insurers, catastrophe risk was a big source of financial performance volatility, although most managed the risk well through reinsurance and by managing risk aggregations in catastrophe-prone areas. Personal lines insurers which principally underwrite auto business – of the six, Kemper and Progressive Corporation had the highest auto-to-home business ratio at 94.8% and 94.4% respectively – tended to have relatively low underwriting risk, giving them the advantage of higher levels of operating leverage. By contrast, the homeowners’ business generally required lower levels of operating leverage.

All six peers maintained leverage at the high end of the US property/casualty industry.

Generally, because of the short-tail nature of auto insurance products, personal auto insurers had investment portfolios consisting almost entirely of high-quality, short-duration, fixed-income investments. The Fitch Ratings peer review noted that among the analyzed personal line insurers, Allstate Insurance had the highest consolidated risky asset ratio. The six insurers generally maintained modest allocations to various risk assets.

READ ALSO

Ontario’s new approach to emergency response

Slowing growth a ‘good thing’ when economy is overheated: BoC’s Macklem

Tags: Fitch peer reviewFitch Ratingspersonal line insurers

Related Posts

Ontario’s new approach to emergency response
Business

Ontario’s new approach to emergency response

February 7, 2023
Slowing growth a ‘good thing’ when economy is overheated: BoC’s Macklem
Business

Slowing growth a ‘good thing’ when economy is overheated: BoC’s Macklem

February 7, 2023
PRL Welcomes Emi Adachi to the Team as Calgary Office Leader!
Business

PRL Welcomes Emi Adachi to the Team as Calgary Office Leader!

February 7, 2023
Extension covering “influx of water” trumps broad form flood exclusion
Business

Extension covering “influx of water” trumps broad form flood exclusion

February 6, 2023
Did negligence cause mice ingress and water leaks?
Business

Did negligence cause mice ingress and water leaks?

February 6, 2023
Aviva Canada CEO on brokers’ role in climate change mitigation
Business

Aviva Canada CEO on brokers’ role in climate change mitigation

February 6, 2023
Next Post
Macy’s New York in the Background

Macy’s New York in the Background

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Roblox Is Unbreakable Trello Is this safe?

Roblox Is Unbreakable Trello Is this safe?

November 4, 2022
Discord Registered Games  Discord Registered Gaming You need to join the Club

Discord Registered Games Discord Registered Gaming You need to join the Club

November 4, 2022
How To Chose the Right Data Analytics Program

How To Chose the Right Data Analytics Program

November 4, 2022
Chandrashekhar Guruji Wiki, Age, Girlfriend, Wife, Family, Biography & More

Chandrashekhar Guruji Wiki, Age, Girlfriend, Wife, Family, Biography & More

November 4, 2022
Heavy explosion on market square in Halle – three injured

Heavy explosion on market square in Halle – three injured

November 4, 2022

EDITOR'S PICK

6 Reasons Why You Need A 1 Litre Water Bottle

June 30, 2022

Baden-Württemberg: Blitz sets warehouse on fire – more storms expected

August 27, 2022
Coinbase Wallet drops some cryptocurrencies, including Ripple’s XRP and Bitcoin Cash (BCH)

Coinbase Wallet drops some cryptocurrencies, including Ripple’s XRP and Bitcoin Cash (BCH)

November 30, 2022
U-M leads multi-university partnership that aims to predict cognitive fatigue in individuals

U-M leads multi-university partnership that aims to predict cognitive fatigue in individuals

December 14, 2022

About

Sepoy.net is a perfect place for people who want daily updates on news related to business, technology, entertainment, health, cryptocurrency etc.

Contact: [email protected]

Major Categories

News

Business

Tech

Economy

 

Recent Posts

  • The Pill Club reaches $18.3 million Medicaid fraud settlement with California
  • Volkswagen operating profit increases
  • The Benefits of Investing in Aluminium Plantation Shutters

Pages

  • About Us
  • Contact Us
  • Disclaimer
  • DMCA
  • Home
  • Privacy Policy

© 2023 Sepoy.net

No Result
View All Result
  • Home
  • Business
  • News
  • Health
  • Tech
  • Science
  • Lifestyle
  • Travel

© 2023 Sepoy.net