Fitch Ratings analysis of North American insurance companies shows that nearly half of its funding comes from nontraditional sources. (Photo: Thinkstock)

New York City-based ratings agency Fitch Ratings said the level of total financing and commitments has become a key indicator of capitalization in its analysis of North American insurance companies as funding sources and access to capital markets have varied, according to a report it published Tuesday.

Fitch said the total financing and commitments (TFC) ratio year-end 2014 average for North American insurers in Fitch’s coverage universe is 0.49x, using shareholders’ equity adjusted for financial accounting standards. This is at the low end of Fitch’s “medium” (0.4x-0.8x) level guideline.

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