Litmus Guide to getting a first rating
Getting a rating is a big step, and not one to be taken lightly, especially for smaller insurers. There needs to be a sensible business rationale, balancing the risks and costs with the benefits. And the process is never quite as easy as most imagine. This guide aims to give you a head start.
Litmus Ratings Guide
Litmus Key Ratio Guide
In re/insurance, and elsewhere in finance, ratings and rating agencies occupy a contradictory place in the transaction process; both heavily relied on but also the subject of a lot of cynicism.
This guide seeks to throw more light on the reality and help insurance and reinsurance market participants make the most effective use of ratings. The guide gives a plain English explanation of the intentions of the rating agencies, compares their approaches, looking at the differences between ‘interactive’, unsolicited and ‘pi’ ratings and their performance. We also cover the business models of the agencies, the use of capital models, ‘group’ ratings, ratings notching and debt ratings, the impact of sovereign ratings on insurance ratings, the Lloyd’s market and ratings for start-up entities.