Fitch: With Wage, Medical Inflation, Comp Profits Could Dip

In a report issued Thursday, Fitch Ratings said it anticipates workers' compensation profits to dip due to “generally” declining rates in recent years, a reduction in reserve development and the “potential for rising claims costs from medical inflation.” Calling it “the strongest-performing” major commercial product line for the U.S. property and casualty market for “an extended period,” Fitch cited its 10 consecutive years of underwriting profits and an average combined ratio of 90% from 2015 to 2024, with that percentage dipping to 89...