Fitch Publishes U.S. Fidelity / Surety Market Dashboard

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has published a new Dashboard Report on the U.S. Fidelity and Surety market.

Growth in surety and fidelity premiums lines has trailed overall property/casualty insurance industry premium by a significant margin. Surety premiums in particular have suffered from slow economic growth and limited construction activity, especially in infrastructure- and government-related projects.

Surety is traditionally a profitable low loss ratio business that has experienced some periods in the past of underwriting volatility. From 2010-2014, the industry statutory combined ratio in surety was 77%. Potential larger incurred losses related to the 2008-09 economic recession have not materialized. Over the same period fidelity lines had a 97% average combined ratio.

Travelers Companies, Inc. (Travelers) and Liberty Mutual Group are the leading surety underwriters by some margin, with a 15% market share each. The fidelity market is more concentrated, with The Chubb Corporation (Chubb) as the leading writer (24% share), followed by Travelers (17%) and American International Group, Inc. (12%).

Merger activity in the property casualty insurance market will impact the fidelity and surety market. Specifically, Ace Limited will become the market leader in fidelity with its planned acquisition of Chubb and move to the fourth largest in surety.

The 'U.S. Fidelity / Surety Market Dashboard' is available on Fitch's website at 'www.fitchratings.com' or by clicking on the link.

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

U.S. Fidelity/Surety Market Dashboard

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870465

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150901006583/en/

Fitch Ratings
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Source: Fitch Ratings

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