Fitch Ratings said its new capital model has affected the rating of eight property-casualty insurance companies, and an analyst said the model also identified some potential financial problems in the sector's future.
James B. Auden, senior director, insurance, in the rating agency's Chicago office, during a conference call today to discuss Fitch Ratings' new model named Prism said that p-c insurers will need greater capital requirements as the soft market continues.
He said despite market growth, underwriting results are deteriorating. If that deterioration continues, insurers will need to increase capital to cover those risks, he noted.
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