The U.S. property/casualty insurance industry will meet or exceed estimates for underwriting performance and net income for the full year, according to a report Fitch Inc. released Tuesday.
Favorable and improved first-half operating performance from a year earlier indicates that strong performance should continue over the next several months, barring any unusual events, the New York research firm said.
"Fitch recognizes that results in the second half of 2006 are unlikely to match the impressive year-to-date results, due to the seasonality of U.S. windstorm activity, most of which typically takes place in the third quarter," James Auden, a senior director at Fitch, said Tuesday in a press release about the report.
The 2004 and 2005 hurricane seasons revealed the potential for increased frequency and higher severity of insured losses related to natural catastrophes, Fitch said. According to the report, the agency believes that the realization will continue to affect pricing and reinsurance availability in lines exposed to catastrophes for the foreseeable future.
