S&P Global Ratings has a stable outlook on the North American property/casualty, bond, mortgage, and title insurance industries in 2021, while the global reinsurance sector remains on negative outlook. While capital strength is a key pillar supporting the credit quality of many North American non-life insurers, we also actively surveil their underwriting discipline, risk exposure management, and asset quality. Despite the many pressures caused by the COVID-19 pandemic, market volatility, and a more active catastrophe season, most subsectors performed well in 2020. Variations in performance were tied to the level of exposure to either macroeconomic risks or natural catastrophes.
In general, we expect share buybacks and dividends to grow in 2021 after a hiatus in 2020. Mergers and acquisitions will likely remain high as a way to augment diversification, scale, and market presence. Organic growth will also be stronger as rate increases continue and the economy recovers; meanwhile, we don't expect policyholder rebates to persist. Despite improving interest rates, investment yields will remain suppressed, but investment income will remain a dominant component of earnings.
Below, we have listed all non-life companies we publicly rate from strongest to weakest, based on the financial strength ratings and outlooks as of April 28, 2021. Companies with the same ratings and outlooks are listed alphabetically.
Table 1
North American Property/Casualty Insurers And Reinsurers | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Sector | Country of domicile | Holding company rating | Financial strength rating | Outlook | Business risk profile | Financial risk profile | |||||||||
United Services Automobile Association |
P/C | U.S. | AA | AA+ | Stable | Very Strong | Excellent | |||||||||
Berkshire Hathaway Inc.-Insurance Group |
Re/insurance | U.S. | AA | AA+ | Stable | Very Strong | Very Strong | |||||||||
Chubb Ltd. |
P/C | Switzerland | A | AA | Stable | Very Strong | Very Strong | |||||||||
Progressive Corp. |
P/C | U.S. | A | AA | Stable | Very Strong | Excellent | |||||||||
State Farm Mutual Automobile Insurance Co. |
Multiline | U.S. | NR | AA | Stable | Very Strong | Excellent | |||||||||
The Travelers Cos. Inc. |
P/C | U.S. | A | AA | Stable | Very Strong | Excellent | |||||||||
Allstate Corp. |
Multiline | U.S. | A- | AA- | Stable | Very Strong | Very Strong | |||||||||
ACUITY a Mutual Insurance Co. |
P/C | U.S. | NR | A+ | Stable | Strong | Excellent | |||||||||
Alleghany Corp. |
Re/insurance | U.S. | BBB+ | A+ | Stable | Strong | Strong | |||||||||
American Financial Group Inc. and P/C subsidiaries* |
Multiline | U.S. | BBB+ | A+ | Stable | Very Strong | Satisfactory | |||||||||
American International Group Inc. and P/C subsidiaries§ |
Multiline | U.S. | BBB+ | A+ | CW Negative | Very Strong | Strong | |||||||||
Arch Capital Group Ltd. |
Re/insurance and mortgage insurance | Bermuda | A- | A+ | Negative | Strong | Very Strong | |||||||||
AXIS Capital Holdings Ltd. |
Re/insurance | Bermuda | A- | A+ | Negative | Strong | Very Strong | |||||||||
Cincinnati Financial Corp. |
Multiline | U.S. | BBB+ | A+ | Stable | Strong | Very Strong | |||||||||
CNA Financial Corp. |
P/C | U.S. | A- | A+ | Stable | Strong | Very Strong | |||||||||
Everest Re Group Ltd. |
Re/insurance | Bermuda | A- | A+ | Stable | Very Strong | Strong | |||||||||
Factory Mutual Insurance Co. |
P/C | U.S. | NR | A+ | Stable | Very Strong | Strong | |||||||||
Hartford Financial Services Group Inc. |
P/C | U.S. | BBB+ | A+ | Stable | Very Strong | Strong | |||||||||
Nationwide Mutual Insurance Co. |
Multiline | U.S. | BBB+ | A+ | Stable | Very Strong | Strong | |||||||||
Old Republic International Corp. |
P/C | U.S. | BBB+ | A+ | Stable | Strong | Excellent | |||||||||
PartnerRe Ltd. |
Reinsurance | Bermuda | A- | A+ | Negative | Very Strong | Strong | |||||||||
RenaissanceRe Holdings Ltd. |
Reinsurance | Bermuda | A- | A+ | Stable | Very Strong | Strong | |||||||||
W.R. Berkley Corp. |
P/C | U.S. | BBB+ | A+ | Stable | Strong | Very Strong | |||||||||
Selective Insurance Group Inc. |
P/C | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
American Family Mutual Insurance Co., S.I. |
P/C | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
Assurant Inc. and P/C subsidiaries† |
P/C | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
Farmers Insurance Exchange |
P/C | U.S. | NR | A | Stable | Strong | Fair | |||||||||
First Insurance Co. of Hawaii Ltd. |
P/C | U.S. | NR | A | Stable | Satisfactory | Strong | |||||||||
Horace Mann Educators Corp. |
Multiline | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
Kemper Corp. |
Multiline | U.S. | BBB | A | Stable | Strong | Very Strong | |||||||||
Liberty Mutual Group Inc. |
P/C | U.S. | BBB | A | Stable | Very Strong | Satisfactory | |||||||||
Markel Corp. |
Re/insurance | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
Oil Insurance Ltd. |
Insurance | Bermuda | NR | A | Stable | Satisfactory | Excellent | |||||||||
RLI Corp. |
P/C | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
The Hanover Insurance Group Inc. |
P/C | U.S. | BBB | A | Stable | Strong | Strong | |||||||||
Associated Electric & Gas Insurance Services Ltd. (AEGIS) |
P/C | Bermuda | NR | A- | Stable | Strong | Satisfactory | |||||||||
Argo Group International Holdings Ltd. |
Re/insurance | U.S. | BBB- | A- | Negative | Strong | Strong | |||||||||
Co-operators Financial Services Ltd. |
Multiline | Canada | BBB | A- | Stable | Strong | Strong | |||||||||
Fairfax Financial Holdings Ltd. |
Re/insurance | Canada | BBB- | A- | Stable | Strong | Satisfactory | |||||||||
Fidelis Insurance Holdings Ltd. |
Re/insurance | Bermuda | BBB | A- | Stable | Satisfactory | Strong | |||||||||
Greater New York Mutual Insurance Co. |
P/C | U.S. | NR | A- | Stable | Satisfactory | Strong | |||||||||
Lancashire Holdings Ltd. |
Re/insurance | Bermuda | BBB | A- | Stable | Strong | Strong | |||||||||
Pinnacol Assurance |
P/C | U.S. | NR | BBB+ | Stable | Fair | Strong | |||||||||
R.V.I. Guaranty Co. Ltd. |
P/C | U.S. | NR | BBB+ | Stable | Satisfactory | Strong | |||||||||
Finial Holdings Inc. (SI to BRK) |
In run-off insurance | U.S. | BBB+ | NR | Stable | Fair | Strong | |||||||||
Enstar Group Ltd. |
Run-off specialist | Bermuda | BBB | NR | Stable | Strong | Satisfactory | |||||||||
American Steamship Owners Mutual P&I Assoc. Inc. |
P/C | U.S. | NR | BBB- | Stable | Satisfactory | Marginal | |||||||||
Hochheim Prairie Farm Mutual Insurance Assn. |
P/C | U.S. | NR | B+ | Stable | Fair | Weak | |||||||||
ProAssurance Corp. |
P/C | U.S. | BBB- | NR | CW Negative | Satisfactory | Strong | |||||||||
*American Financial Group Inc. U.S. annuity insurance subsidiaries financial strength ratings are 'A+' and on CreditWatch developing. §American International Group Inc. U.S. life insurance subsidiaries financial strength ratings are 'A+' and on CreditWatch developing. †Assurant Inc. life insurance subsidiaries financial strength ratings are 'A' and on CreditWatch developing. NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings. |
Table 2
North American Mortgage Insurers | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Sector | Country of domicile | Holding company rating | Financial strength rating | Outlook | Business risk profile | Financial risk profile | |||||||||
Sagen MI Canada Inc. (f/k/a Genworth MI Canada Inc.) |
Mortgage insurance | Canada | BBB+ | A+ | Stable | Strong | Excellent | |||||||||
Essent Guaranty Inc. |
Mortgage insurance | U.S. | N/A | BBB+ | Stable | Satisfactory | Satisfactory | |||||||||
MGIC Investment Corp. |
Mortgage insurance | U.S. | BB+ | BBB+ | Stable | Satisfactory | Satisfactory | |||||||||
Radian Group Inc. |
Mortgage insurance | U.S. | BB+ | BBB+ | Stable | Satisfactory | Satisfactory | |||||||||
NMI Holdings Inc. |
Mortgage insurance | U.S. | BB | BBB | Positive | Satisfactory | Fair | |||||||||
Genworth Financial Inc. |
Multiline | U.S. | B- | N/A | Negative | Satisfactory | Marginal | |||||||||
Genworth Mortgage Insurance Corp. |
Mortgage insurance | U.S. | NR | BB+ | Negative | Satisfactory | Satisfactory | |||||||||
NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings. |
Table 3
North American Bond Insurers | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Sector | Country of domicile | Holding company rating | Financial strength rating | Outlook | Business risk profile | Financial risk profile | |||||||||
Assured Guaranty Ltd. |
Bond insurance | Bermuda | A | AA | Stable | Very Strong | Very Strong | |||||||||
Build America Mutual Assurance Co. |
Bond insurance | U.S. | NR | AA | Stable | Very Strong | Very Strong | |||||||||
NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings. |
Table 4
North American Title Insurers | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Sector | Country of domicile | Holding company rating | Financial strength rating | Outlook | Business risk profile | Financial risk profile | |||||||||
Fidelity National Financial Inc. |
Title services | U.S. | BBB | A | Stable | Strong | Very Strong | |||||||||
First American Financial Corp. |
Title services | U.S. | BBB- | A- | Stable | Satisfactory | Very Strong | |||||||||
Ratings as of April 28, 2021. Source: S&P Global Ratings. |
This report does not constitute a rating action.
Primary Credit Analyst: | Patricia A Kwan, New York + 1 (212) 438 6256; patricia.kwan@spglobal.com |
Secondary Contacts: | John Iten, Princeton + 1 (212) 438 1757; john.iten@spglobal.com |
Brian Suozzo, New York + 1 (212) 438 0525; brian.suozzo@spglobal.com | |
David S Veno, Princeton + 1 (212) 438 2108; david.veno@spglobal.com | |
Taoufik Gharib, New York + 1 (212) 438 7253; taoufik.gharib@spglobal.com | |
Hardeep S Manku, Toronto + 1 (416) 507 2547; hardeep.manku@spglobal.com | |
Saurabh B Khasnis, Centennial + 1 (303) 721 4554; saurabh.khasnis@spglobal.com | |
Joseph N Marinucci, New York + 1 (212) 438 2012; joseph.marinucci@spglobal.com | |
Research Assistants: | Michael Zimmerman, Centennial |
Jesse Capaul, Centennial |
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.