Best Upgrades Company Ratings after Country Risk Methodology Review

A.M. Best Co. announced that it has upgraded the ratings of a nember of companies -l isted below – following a review of the application of its country risk methodology within the rating process.

Best explained that as part of that process it evaluates, in a global context, “the risks and rewards for an insurer operating within a particular country” using its own analytical method. This type of analysis helps “to determine how country-specific factors outside an insurer’s control might affect its ability to meet ongoing financial obligations to policyholders or debt holders.”

Such factors include: “local accounting rules, government policies and regulation, economic growth and social stability.” As a result of this evaluation, Best classifies each country into one of five tiers, from “Tier I” to “Tier V” and factors the country’s risk tier into each insurer’s rating.

Best further explained that while its “country risk tier assessments are not changing, it has “modified the impact the country risk tier has on financial strength ratings (FSR) to provide a more equitable weighting of country-specific factors across all tiers. The modifications were made to eliminate an unexpected bias in the application of the methodology, which primarily affected companies operating within Tiers II through IV. This revised application of the country risk tiers will be used prospectively on all rating assignments.”

Best also indicated that it has upgraded the FSRs and/or the issuer credit ratings (ICR) of the companies noted below to reflect its modified approach. The capitalization, operating results and business profile of these companies have otherwise not materially changed since their last full rating review.

The following Companies were listed by Best, as indicated:
— Best has affirmed the FSR of B++ (Good) and upgraded the ICR to “bbb+” from “bbb” of Alliance International Reinsurance Public Company Limited (Cyprus). The outlook for the FSR has been revised to positive from stable, and the outlook for the ICR remains positive.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb” of Alliance Insurance (PSC) (United Arab Emirates). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of B.E.S.T. Reinsurance (Tunisia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb+” from “bbb-” of Life Insurance Corporation (International) B.S.C. (C) (Bahrain). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb” from “bbb-” of Milli Reasurans Turk Anonim Sirketi (Turkey) The outlook for the FSR has been revised to stable from positive, and the outlook for the ICR remains positive.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb+” from “bbb-“of National Life & General Insurance Company SAOC (Oman). The outlook for both ratings remains stable.

— Best has affirmed the FSR of B++ (Good) and upgraded the ICR to “bbb+” from “bbb” of Qatar General Insurance and Reinsurance Company (S.A.Q.) (Qatar). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of Salama Islamic Arab Insurance Company (P.S.C.) (United Arab Emirates). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B (Fair) from B- (Fair) and the ICR to “bb+” from “bb-“of Scandinavia Insurance Company Limited Liability Company (Russia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B- (Fair) from C++ (Marginal) and the ICR to “bb-” from “b+” of Transsiberian Reinsurance Corporation OJSC (Russia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of Trust International Insurance Co. B.S.C. (C) Bahrain (Bahrain). The outlook for both ratings remains stable.

Source: A.M. Best – Best Upgrades Company Ratings after Country Risk Methodology Review

A.M. Best Co. announced that it has upgraded the ratings of several companies -listed below – following a review of the application of its country risk methodology within the
rating process.

Best explained that as part of the rating process it evaluates, in a global context, “the risks and rewards for an insurer operating within a particular country” using its own analytical method. This type of analysis helps “to determine how country-specific factors outside an insurer’s control might affect its ability to meet ongoing financial obligations to policyholders or debt holders,” said Best.

Such factors include: “local accounting rules, government policies and regulation, economic growth and social stability.” As a result of this evaluation, Best classifies each country into one of five tiers, from “Tier I” to “Tier V” and factors the each country’s risk tier into each insurer’s rating.

Best further explained that while its “country risk tier assessments are not changing, it has “modified the impact the country risk tier has on financial strength ratings (FSR) to provide a more equitable weighting of country-specific factors across all tiers. The modifications were made to eliminate an unexpected bias in the application of the methodology, which primarily affected companies operating within Tiers II through IV. This revised application of the country risk tiers will be used prospectively on all rating assignments.”

Best also indicated that it has upgraded the FSRs and/or the issuer credit ratings (ICR) of the companies noted below to reflect its modified approach. The capitalization, operating results and business profile of these companies have otherwise not materially changed since their last full rating review.

The following Companies were listed by Best, as indicated:
— Best has affirmed the FSR of B++ (Good) and upgraded the ICR to “bbb+” from “bbb” of Alliance International Reinsurance Public Company Limited (Cyprus). The outlook for the FSR has been revised to positive from stable, and the outlook for the ICR remains positive.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb” of Alliance Insurance (PSC) (United Arab Emirates). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of B.E.S.T. Reinsurance (Tunisia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb+” from “bbb-” of Life Insurance Corporation (International) B.S.C. (C) (Bahrain). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb” from “bbb-” of Milli Reasurans Turk Anonim Sirketi (Turkey) The outlook for the FSR has been revised to stable from positive, and the outlook for the ICR remains positive.

— Best has upgraded the FSR to B++ (Good) from B+ (Good) and the ICR to “bbb+” from “bbb-“of National Life & General Insurance Company SAOC (Oman). The outlook for both ratings remains stable.

— Best has affirmed the FSR of B++ (Good) and upgraded the ICR to “bbb+” from “bbb” of Qatar General Insurance and Reinsurance Company (S.A.Q.) (Qatar). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of Salama Islamic Arab Insurance Company (P.S.C.) (United Arab Emirates). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B (Fair) from B- (Fair) and the ICR to “bb+” from “bb-“of Scandinavia Insurance Company Limited Liability Company (Russia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to B- (Fair) from C++ (Marginal) and the ICR to “bb-” from “b+” of Transsiberian Reinsurance Corporation OJSC (Russia). The outlook for both ratings remains stable.

— Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to “a-” from “bbb+” of Trust International Insurance Co. B.S.C. (C) Bahrain (Bahrain). The outlook for both ratings remains stable.

Source: A.M. Best – www.ambest.com