Market Overview

Fitch: U.S. Insurance Broker Outlook Stable for 2013

CHICAGO--(BUSINESS WIRE)--

Fitch Ratings expects that revenue and earnings growth for U.S. insurance brokers in 2013 will remain relatively stable compared to levels ultimately reported in 2012.

In a new special report, Fitch discusses key factors supporting the Stable Rating Outlook for the insurance broker market, trends in operating performance and credit fundamentals, brief updates of recent events and the rating rationale for individual brokers in the rating universe.

Fitch anticipates that most U.S. insurance brokers could report low to mid-single digit organic growth and modestly improved profit margins in 2013, aided by favorable premium rate trends across many insurance segments.

The competitive fundamentals of the property/casualty insurance market and tepid pace of the global economic recovery will nevertheless continue to challenge more meaningful improvement in operating performance.

Fitch expects credit trends in 2013 to be favorable, driven by expectations for moderate earnings growth coupled with largely stable outstanding debt levels and modestly lower run rate interest expenses. While performance over time varies by company, Fitch expects that the brokers' performance will remain consistent with investment-grade debt ratings.

The full report '2013 Outlook: U.S. Insurance Broker Industry' is available at 'www.fitchratings.com.'

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

Applicable Criteria and Related Research: 2013 Outlook: U.S. Insurance Brokers Industry

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695473

U.S. Insurance Broker Industry Sector Credit Factors

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=677409

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

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 Ratings
Greg Dickerson, +1-212-908-0220
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Gretchen Roetzer, +1-312-606-2327
Director
or
Jim Auden, +1-312-368-3146
Managing Director
or
Media Relations
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com

 

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