Fitch: Motor Losses to Constrain China Non-Life Insurers' Margins

Wed May 21, 2014 9:00pm EDT

Related Topics

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: China Non-Life Insurance Market Dashboard 1H14 here HONG KONG, May 21 (Fitch) Fitch Ratings says in a new report that the underwriting profitability of small and mid-sized non-life insurance companies in China will be constrained in 2014 by losses from the motor insurance segment. Fitch expects the advantages of scale will enable major listed insurers to maintain their combined ratios at below 100% in 2014 in the absence of major catastrophe losses. High-growth insurers will have to replenish their capital to support their premium growth after their solvency buffers declined in 2013. In view of the change in the capital regime in China, Fitch expects non-life insurers to become more proactive in managing not just their underwriting practices, but also their asset risk exposure. The 'China Non-Life Insurance Market Dashboard 1H14' is available at www.fitchratings.com or by clicking on the link above Contacts: Terrence Wong Director +852 2263 9920 Fitch (Hong Kong) Limited 2801, Tower Two, Lippo Centre 89 Queensway, Hong Kong Joyce Huang Director +852 2263 9595 Jeffrey Liew Senior Director +852 2263 9939 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. 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: here. 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.

FILED UNDER: