The Numbers 1. Make sure the agency capital model is completed properly Obvious, but we’ve seen a number of examples where there were errors that weakened the result and/or key strengths that could have been highlighted but were missed. 2. Prospective earnings are crucial, but you have
Read more →Analysing a non-life re/insurer can be a complicated process; however some of the most important information is the data in the public accounts. This quick reference guide gives an overview of the more commonly used metrics and ratios. by its nature the guide summarises the descriptions provided.
Read more →This article, in the pdf accessed through the link below, gives guidance to re/insurance practitioners on the basics of ratings and how to use them effectively. The perils of ineffective use of ratings An abbreviated version of the article, without diagrams, can also be found here – www.youtalk-insurance.com
Read more →Back in March we suggested that the supposed structural link between low investment returns and poor profitability for reinsurers was a myth. Our view in essence (http://litmusanalysisblog.wordpress.com/2013/03/06/reinsurer-profitability-and-the-interest-rate-myth/) was – and is – that expected investment yields are a generic given, and that reinsurance pricing therefore reflects
Read more →Standard & Poor’s (S&P) recent release of the details of its review of the ratings of the 11 out of 13 members of the International Group (IG), which are interactively rated, brought with it a number of changes. The arrival of the new criteria has given S&P
Read more →The late ‘80’s was a very particular time and place in the City of London. ‘Big Bang’ and the Lawson boom set the tone for the UK’s financial centre’s own version of American Yuppiedom. Mobile phones the size of bricks, red braces, big hair, cocktails of dubious
Read more →This is a technical article reviewing recent actions by S&P in implementing their new criteria on the reinsurance sector. If you are interested in understanding this further, would like further clarification or would like to comment please feel free to mail us at info@litmusanalysis.com. (*/** indicate references
Read more →As S&P continues to roll out ratings reflecting its new insurance criteria, those of Spanish reinsurers Nacional Re and Mapfre Re give a specific illustration of the impact of the sovereign rating. Many market participants have viewed the two reinsurers as fundamentally ‘A’ range security prior to
Read more →The article below refers to Standard & Poor’s (S&P) new criteria document ‘Criteria | Insurance | General: Insurers: Rating Methodology’, dated 7 May 2013. In changing its criteria, S&P’s three stated goals have been to increase transparency, to make the ratings more prospective and to enhance consistency.
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