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Why Solvency II won't replace the market use of ratings
Although effectively communicating the output is likely to be critical for European re/insurers Periodically we hear the comment that the...
Litmus Analysis
Sep 10, 20164 min read
Litmus comments on Fitch's suggestion that an A- from A.M. Best equates to only a BBB from other agencies
Recently Fitch Ratings (Fitch) released a paper arguing that rating users and regulators should treat an “A-“ A.M. Best (Best) Financial...
Litmus Analysis
Jul 27, 20166 min read
Upgrades and downgrades are inevitable with A.M. Best's new rating approach
A.M. Best is currently in a ‘Request for Comment’ (“RFC”) period for proposed changes to its rating methodology. It is also just...
Litmus Analysis
Jun 8, 20164 min read
Follow My Leader
A message for the rating agencies One of the key elements of the rating process is ‘competitive position’, which for reinsurers refers to...
Litmus Analysis
Nov 9, 20154 min read
The assumptions that can hurt you
Those in the insurance sector live or die by their appreciation and calibration of the risks they cover for various types of customers...
Litmus Analysis
Apr 26, 20153 min read
'The end of the life of pi' (the demise of unsolicited ratings)
One of the most controversial aspects of rating agency activity seems to be dying a slow but inevitable death. On Tuesday S&P announced...
Litmus Analysis
Nov 6, 20143 min read
The Heat is On
S&P’s forecast for Lloyd’s results; the first explicit sign of a much more bearish view of sector earnings. Since January the rating...
Litmus Analysis
Oct 20, 20143 min read
Mutual Appreciation - a rating agency conundrum
It’s easy to speculate that the rating agencies might not give a Mutual (or cooperative) insurer the credit they deserve in the rating...
Litmus Analysis
Jul 30, 20146 min read
Why is the current pricing pain not yet impacting reinsurer ratings?
Since the disappointing pricing at the 1.1. renewal the bad news on reinsurance pricing has kept on coming. April, June and July renewals...
Litmus Analysis
Jul 17, 20143 min read
Will ratings hinder reinsurer M&A and the hedge fund ‘play’?
In the investment banker ‘101’ playbook for cyclical industries the reinsurance industry has arrived at the page marked ‘weak pricing due...
Litmus Analysis
Apr 13, 20144 min read
Mapfre and Generali’s S&P ratings; a stress too far?
S&P’s ratings of Mapfre and Generali have been among the most contentious major insurance group ratings of recent years, due to the...
Litmus Analysis
Mar 24, 20143 min read
Reinsurer downgrades on the cards for 2014; these may be very controversial
On the 20th January, S&P announced that - for the first time since 2006 - it expects a negative trend in reinsurer ratings in 2014. Of...
Litmus Analysis
Jan 22, 20144 min read
How should brokers react to downgrades to BBB?
Recent rating downgrades and the risk of this continuing have focussed the attention of many brokers on an old problem; how, if they use...
Litmus Analysis
Jan 14, 20143 min read
Down, Down, Down – Ratings Trigger Clauses and the Spiral of Descent
With the backdrop of the approaching New Year and many insurance and reinsurance policies being renewed at 1.1., it seems that we will no...
Litmus Analysis
Dec 30, 20132 min read
RSA’s S&P rating remains seriously at risk even after second downgrade
Following S&P’s initial downgrade last month we noted that RSA faced a further risk to its rating without fresh equity. This reflected...
Litmus Analysis
Dec 17, 20133 min read
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