Despite profit deterioration from catastrophe losses in 2005, stronger underwriters will still manage profitability in the near future in the soft market climate, according to a Fitch Ratings report.
Fitch's Chicago office said the U.S. property-casualty insurance industry will report deterioration in profitability in 2005 because insured catastrophe losses reached record levels that year.
The 2005 decrease in profitability is mainly due to the destruction from Hurricane Katrina, the most devastating insured loss event in history, and Hurricanes Rita and Wilma, each of which will rank among the top 10 historical insured loss events, Fitch noted.
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