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The prospects of development will be stable for the brokerage firms in 2018, says S&P

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29 March, 2018 09:45

The firm’s rating S&P Global Ratings says that the ratings and outlook of development will level off in 2018 for firms and business services insurance american. The firm explains, in spite of the adaptation of these enterprises to market conditions that are evolving, they remain stable.

After several years of declining yields in the market of the insurance, the brokers will be able to finally benefit from a modest increase of the price, ” says S&P, which could lead to organic growth and improved margins. “Generally, we believe that the fundamentals of the sector remain strong,” says Julie Herman, credit analyst at S&P.

Low rate increase

“Although the tendency of the rate of insurance will vary significantly for different segments, we expect that the rate of damage increase of a few points in the year 2018, whereas insurers are raising their rates in response to the disasters of 2017 and the continued growth of cost in responsibility,” she says.

The services companies in insurance, as the brokerage firms, the managers of claims and the administrators of the warranty, in particular, companies working in the insurance industry, assuming little or no risk, typically have a rating of ” b “. This reflects the high levels of debt measures and weak credit protection because of the conditions of financing “for aggressive,” said S&P.

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