Fitch Completes Insurance Notching Review for U.S. Title Insurance

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has completed a portfolio review covering 3 insurance groups within the U.S. Title Insurance sector focused exclusively on application of Fitch's recently updated notching criteria for the insurance industry. The purpose of the review was to identify any ratings that should be changed as a result of the application of the updated notching criteria.

Fitch published updated insurance notching criteria on July 14, 2015, following publication of an initial exposure draft of proposed criteria on May 12, 2015. The updated notching criteria appear in Section VI of the insurance master criteria report 'Insurance Rating Methodology'.

Notching refers to the practice of establishing a given rating relative to a defined 'anchor' rating, using guidelines linked to certain characteristics of the rating that is being notched. For Fitch's insurance ratings, the Insurer Financial Strength (IFS) Rating is the initial anchor rating, and other ratings that are notched relative to it include Issuer Default Ratings (IDRs) of operating and holding companies, and debt/hybrid obligation ratings.

Fitch updated its notching criteria in light of changes in the regulatory landscape, including the movement in Europe and other jurisdictions to Solvency 2 or a Solvency 2-type regulatory framework. As a result, from a global perspective, notching changes are more pronounced in Europe and other such jurisdictions, and more limited in the U.S. and similarly regulated countries.

KEY RATING DRIVERS

For this ratings review, the key rating driver was the impact of updated notching criteria. See most recently published Rating Action Commentaries or research reports for additional information on other Key Ratings Drivers pertinent to specific entity ratings.

RATING SENSITIVITIES

Not applicable to this portfolio review given its limited focus on implementation of updated notching criteria. See most recently published Rating Action Commentaries or research reports for additional information on Rating Sensitivities pertinent to specific entity ratings.

SUMMARY OF RATING ACTIONS

A link to the summary report that details all of the ratings actions taken as part of the portfolio review is available via the link below.

The linked summary report includes:

--A full list of ratings and related rating actions

--A hyperlink to each rated entity's ratings summary page on the Fitch website

--Primary analyst and secondary analyst contact information

--Participation status

The review has resulted in no ratings being upgraded, no ratings being downgraded and all 3 holding companies IDR's, obligations, and operating entities IFS ratings affirmed.

LIMITATIONS

The portfolio review was limited in scope, and only included an assessment of updated notching criteria as outlined in Section VI (Notching: Debt, Hybrid, IFS Rating and Holding Companies) of Fitch's insurance master criteria. None of the factors outlined in Section I (Key Rating Factors) of the master criteria, or any other elements discussed in the master criteria, were reviewed. Where relevant, Fitch considered the appropriateness of the relative ranking of ratings in the U.S. Title Insurance sector, after initial consideration of updated notching guidelines, as part of the portfolio review.

Additional information is available on www.fitchratings.com

Fitch Completes Insurance Notching Review for U.S. Title Insurance

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868725

Applicable Criteria

Insurance Rating Methodology (pub. 14 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868367

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=988103

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988103

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150717005500/en/

Fitch Ratings
Committee Chairperson
Martha Butler, CFA
Managing Director
+1-312-368-3191
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Media Relations
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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