U.S. Insurers Should Be Stable in 2013, Says S&P

U.S. insurance sectors are generally poised for stable credit trends in 2013, resulting from strong balance sheets, a stable business climate, and improved enterprise risk management, according to Standard & Poor’s Ratings Services.

In a report titled, U.S. Insurers’ Sound Fundamentals Should Counteract Sluggish 2013 Economic Performance, the rating firm said that the Congressional deal to avert or at least delay the so-called fiscal cliff reduced the near-term likelihood of the U.S. economy falling into recession. However, S&P said the recovery remains fragile and further political brinksmanship over spending and the deficit could overshadow the economy and markets for much of 2013.