Despite weaker profitability, both the commercial and personal lines sectors of the U.S. property/casualty insurance industry have maintained their stable designations from Fitch Ratings, and the market's capital position remains strong, as most rated insurers have sufficient capital to meet significant future adversity.

Fitch found that surplus levels are still at historically high levels and capital adequacy measures, based on traditional operating leverage or on a risk-adjusted basis under Fitch's Prism capital model, remain “very strong.” Investments in high-quality and liquid bonds, adequate loss reserve levels and moderate reinsurance and other credit exposures, continue to contribute to capital strength.

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