How getting it right is crucial to ratings Comparisons to peers play a fundamental role in how major rating agencies assess insurers and reinsurers Rated carriers are both often unclear as to the analytical basis for this and even how and why a peer group
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How a change in group strategy can trigger individual carrier rating downgrades and how to manage the risk. Unexpected rating downgrades are a concern for policyholders and brokers alike. This is especially true when material downgrades happen even though the rated carrier’s stand-alone profile is unchanged, for
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The story so far and a snapshot from the latest reports Since late 2016 BIBA has made its BIBA Litmus Test Report (the “BLTR”) service available to BIBA members. The service covers unrated carriers that are requested for inclusion by BIBA members. The BLTR provides a set
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This is a condensed version of this artcle. For the full article, please contact analytics@litmusanalysis.com ‘Big Four’ renewals highlight improved P&C rating environment Introduction and Executive Summary The big four European reinsurers (Hannover Re, Munich Re, SCOR and Swiss Re) together represent around one third of global
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Litmus Analysis today announced the launch of LitmusQST, a ‘plug and play’ service for insurers and reinsurers looking to stress test the credit profile of their insurance and reinsurance counterparties. The service is an extension of their (re)insurer financial profiling and credit scoring application LitmusQ, which is
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The ability of insurers and reinsurers to meet their policyholder obligations has always been a major concern for their clients. This is why so many buyers use ratings as a central plank of their insurer and reinsurer selection process. However, the early days of the Covid-19 pandemic
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Group Ark and Vantage Risk have both received “Preliminary Credit Assessments” (“PCAs”) from A.M. Best. While Litmus believes these provide valuable insight for potential counterparties, brokers and others the agency makes it very clear that a PCA is not the same thing as a rating. In the
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S&P says insurer ratings resilient for now but potential pressure coming from erosion of capital buffers S&P’s latest commentary on global insurance ratings continues the focus on COVID-19 as the current primary driver of ratings. The headline message remains that most insurer ratings are still ‘resilient’ given the extent of capital buffers. However, erosion of these is expected during the second half of 2020, as
Read more →A.M. Best moves to COVID-19 phase 2 Stuart ShipperleeHead of Analytics Rowena PotterSenior Consultant Analyst Earlier this week A.M. Best (“Best”) announced the results of its initial response to COVID-19, reviewing a set of capital adequacy “stress-tests” across its rated universe using its capital model (the “BCAR”).
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