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June 13 (The following statement was released by the rating agency)
Fitch Ratings says in a new report that it expects the German non-life sector to report a strong increase in its net underwriting result for 2014, on the back of further premium rate increases in the wake of natural catastrophes and related claim experience a year ago. In particular Fitch expects the improvement to be driven by continued premium increases in the motor line, which Fitch expects to report a net combined ratio below 100% in 2014 for the first time in seven years.
The favourable trend in premiums will offset continued muted investment yield resulting from a low interest rate environment. Investment returns for the German non-life sector are forecast by Fitch to fall to 3.4% in 2014 from 3.8% in 2013.
The report, 'German Non-Life Insurance Dashboard: 2014', highlights recent market trends, including weakened underwriting results in 2013 due to the high natural catastrophe activity in Germany that year.
The report is available on 'www.fitchratings.com' or by clicking on the below link.
Link to Fitch Ratings' Report: German Non-Life Insurance Dashboard