Insurance
Master Criteria describe the basic foundation for our ratings within a sector.
Criteria Complements are referenced in the Insurance Rating Criteria, and constitute criteria outputs.
Cross-Sector Criteria explain 巴黎人娱乐城’s approach to topics that relate to multiple areas or audiences.
Sector-Specific Criteria describe 巴黎人娱乐城’s analytical approach for individual sectors, and address specific credit factors. Criteria is applied consistently, making 巴黎人娱乐城's ratings comparable across global financial markets. We link to the Criteria Reports used to assign a particular rating at the bottom of every Rating Action Commentary.
01Insurance Rating Criteria Series
Watch our criteria video series to understand the insurance rating framework and related criteria.
Insurance Rating Criteria – Scope and Framework (Part 1 of 3)
02Criteria Essentials
Criteria Essentials - Insurance Ratings
A concise and pictorial summary of how 巴黎人娱乐城 assigns ratings to insurance companies and to their obligations in a two-page document. You will notably find:
- A flowchart of our framework for assigning ratings to insurance and reinsurance companies
- Key rating drivers of insurer financial strength ratings
- Highlight of the Group Methodology
- Notching approach for insurer obligation ratings.
03Master Criteria
Insurance Rating Criteria
This report specifies 巴黎人娱乐城’ criteria for assigning new and monitoring existing international scale Insurer Financial Strength (IFS) ratings, Issuer Default Ratings (IDRs) and debt/hybrid security ratings, within the global insurance and reinsurance industries. This includes ratings in the non-life (i.e. property/casualty or general insurance), life/annuity, health/managed care, financial guaranty, trade credit, mortgage and takaful insurance sectors. Derivation of national scale ratings is discussed in the cross-sector criteria denoted on page 2.
04Criteria Complements
The reports in this section are instrumental to the analysis, and are amended or updated, depending on country-specific developments and the evolution of 巴黎人娱乐城’s analytical understanding of the provisions included in these reports.
Industry Profile and Operating Environment (IPOE) - Insurance Summary
巴黎人娱乐城 evaluates the relative strengths and weaknesses of an insurer’s insurance markets and sectors, and overall operating environment from several perspectives. - Regulatory Oversight - Technical Sophistication of Insurance Market; Diversity and Breadth - Competitive Profile - Financial Markets Development - Country Risks
巴黎人娱乐城 Regulatory Classification - Insurance Summary
The form of regulation establishes a theoretical foundation throughout these notching criteria. 巴黎人娱乐城 classifies regulation as being either 'Group Solvency', 'Ring Fencing' or 'Other'. Please see 巴黎人娱乐城's Insurance Criteria for details about the above regulatory definitions.
Reserve Adequacy - Insurance Summary
In most developed markets, a combined ranking of 'neutral' above meets an ‘A’ IFS scoring guideline. For certain developing market countries, 巴黎人娱乐城 revises this neutral guideline when the agency believes reserving sophistication is below that of developed markets.
05Sector-Specific
Chilean Equity Rating Criteria
This report describes the methodology that 巴黎人娱乐城 uses to rate stock instruments issued or to be issued and/or traded on Chilean stock markets. The ratings assigned to these instruments are national scale ratings and, therefore, are not comparable across countries. Equity ratings arose in response to regulatory requirements. However, they evolved to become a market practice, as such requirements are no longer applicable. Stocks referred to in this report include, but are not limited to, common shares issued by financial and non-financial entities. This methodology does not apply to preferred stock or shares issued outside the framework of a public offering by private funds or other investment vehicles.
Insurance-Linked Securities Rating Criteria
This report provides the global methodology for rating new and monitoring existing insurance-linked securities (ILS) either as the obligations or as counterparty credit risk of special-purpose (re)insurers. ILS refers to various types of transactions whose primary aim is to isolate and transfer specific insurance-related risks to investors or other third parties. ILS can serve as a vehicle for risk transfer, risk financing or securitization of future cash flows. Examples of transferred risk perils include natural catastrophes, pandemics (extreme mortality) and medical loss ratios. Risk financing may cover excess reserve requirements on life insurance contracts (i.e. Regulation XXX reserves). Securitization transactions may include fees from unit-linked annuities or net cash flows from disability income business.
06Cross-Sector
Sukuk Rating Criteria
This report describes 巴黎人娱乐城’ approach to assigning and maintaining international and national ratings for new and existing originator-backed sukuk issues. These criteria apply to originator-backed (or “asset-based”) sukuk structures, where investors rely upon obligor direct support features and contractual commitments built into the documentation. These criteria apply globally to corporates, financial institutions, sovereigns, supranationals, public finance, insurers and global infrastructure. They do not apply to asset-backed sukuk, which rely on underlying collateral. The originator typically incorporates an undertaking whereby the obligor is committed irrevocably to repurchase the underlying sukuk assets on maturity (or earlier, in the event of any dissolution event or default), covering in full the outstanding principal and any accrued but unpaid periodic distribution amounts in a timely manner, during the life of a sukuk or at any dissolution event. If the sukuk principal payment were subject to market risk, which affects the repayment amount to sukuk holders, the sukuk would be unrateable.