Jan 8 - U.S. insurance sectors are generally poised for stable credit trends
in 2013, resulting from strong balance sheets, a stable business climate, and
improved enterprise risk management, according to a report released today by
Standard & Poor's Ratings Services titled, "U.S. Insurers' Sound Fundamentals
Should Counteract Sluggish 2013 Economic Performance."
The Congressional deal to avert or at least delay the so-called fiscal cliff
reduced the near-term likelihood of the U.S. economy falling into recession.
However, the recovery remains fragile and further political brinksmanship over
spending and the deficit could overshadow the economy and markets for much of
"This sluggish recovery continues to weigh on all insurance sectors, and we
expect the rating impact to be stable to modestly negative in 2013," said
Standard & Poor's credit analyst Rodney Clark. However, risk aversion and
strongly recovered capital bases since the financial crisis will go far in
mitigating negative factors. Unfortunately, we expect the downside risks to
continue to outweigh upside risks at least in 2013.
The report is available to subscribers of RatingsDirect on the Global Credit
Portal at www.globalcreditportal.com. If you are not a RatingsDirect
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280
or sending an e-mail to firstname.lastname@example.org. Ratings
information can also be found on Standard & Poor's public Web site by using
the Ratings search box located in the left column at www.standardandpoors.com.