The devil is in the detail of rating agency insurer and reinsurer peer analysis

The devil is in the detail of rating agency insurer and reinsurer peer analysis

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

Read more

Aviva France downgrades highlight a key risk for rating users.

Aviva France downgrades highlight a key risk for rating users.

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

Read more

The BLTR – Benchmarking the Credit Profiles of Unrated Carriers

The BLTR – Benchmarking the Credit Profiles of Unrated Carriers

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

Read more

Reinsurance Renewal Roundup January 2021

Reinsurance Renewal Roundup January 2021

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

Read more

Litmus launches new re/insurer counterparty credit stress testing service LitmusQST

Litmus launches new re/insurer counterparty credit stress testing service LitmusQST

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

Read more

Re/insurer stress-testing in the spotlight – Regulators take aim

Re/insurer stress-testing in the spotlight – Regulators take aim

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

Read more

Important considerations for understanding the A.M. Best PCA’s on Group Ark and Vantage Risk

Important considerations for understanding the A.M. Best PCA’s on Group Ark and Vantage Risk

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

Read more

Different rating agencies, different views

Different rating agencies, different views
In the run-up to the 2020 renewal season and what would normally be the Monte Carlo industry get-together, the four global rating agencies have as usual published their views on the Global Reinsurance market. A key element of this is the updating of sector/segment/industry Outlooks.  As LitmusRead more

Commentary on S&P’s “Resilient for Now: A second wave could eat into insurers’ capital” Article

Commentary on S&P’s “Resilient for Now: A second wave could eat into insurers’ capital” Article

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

Challenges on the horizon for some (re)insurers

Challenges on the horizon for some (re)insurers

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”).

Read more