The two drivers of profitability and ROE for U.S. P&C insurers are underwriting and investments.

According to a special report published by Fitch Ratings, more competitive property and casualty (P&C) insurance premium rates and the potential for reduced favorable reserve development as well as higher catastrophe losses in 2015, are leading to a forecast toward break-even underwriting results and lower returns on equity (ROEs) in the future.

The report, titled U.S. Property/Casualty Insurance Profit Fundamentals, reviews fundamental drivers of profitability for the P&C insurance industry and gives some perspective on where the industry is headed. 

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Jayleen R. Heft

Jayleen Heft is the digital content editor for PropertyCasualty360.com. Contact her at [email protected].

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