S&P introduces new factor for ratings assessment

International Insurance fund news

Firm to consider country risk in evaluation process Standard &Poor’s (S&P) a leading credit firm that provides ratings for the world’s insurance companies, has announced that it will begin considering country risk when evaluating insurers. Country risk refers to the risks associated in investing in certain countries. These risks can change depending on economic climate, the state of a country’s various businesses, and numerous political factors. The changes to the firm’s evaluation process will affect all lines of insurance and will be used to issue revised ratings to insurance companies.…

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S&P downgrades Californian insurers while Commissioner Jones insists the companies are financially sound

Rating agency Standard & Poor’s seems to be in the grips of a downgrading frenzy as the agency downgrades the credit ratings of five of California largest insurance companies. The move comes on the heels of the agency’s downgrading of the federal government’s credit rating, which sparked controversy throughout the country and drove many businesses to re-evaluate their place in the commercial market. S&P downgrade of the state’s insurers could have major implications for the industry, but Insurance Commissioner Dave Jones says that there should be no doubt about the…

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S&P claims top insurance companies could lose leading ratings

Standard & Poor’s recently announced that the top insurers in the country may lose their leading credit ratings as a result of the debates that have raised the federal debt ceiling. Affected insurance companies could include New York Life Insurance and the Texas-based USAA, as well as the Teachers Insurance & Annuity Association of America, Northwestern Mutual Life Insurance Co., and Knights of Columbus.  Standard & Poor’s stated that each of these insurers risk losing their AAA credit ratings. The S&P statement said that the cause is the “significant holdings”…

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The cost of reinsurance in New Zealand set to triple starting July 1

As the rebuilding of Christchurch, New Zealand, continues months after a disastrous earthquake struck the nation, insurance companies are going to have a hard time finding reinsurance deals as prices are set to triple by July 1st, according to S&P’s analysts. The rise in reinsurance rates is due to the extent of the damage done in New Zealand by the initial quake and its subsequent aftershocks, which are still occurring today. As the aftershocks continue, so too does the damage worsen, driving reinsurers to raise their rates in an effort…

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