CHICAGO--(BUSINESS WIRE)--Fitch Ratings has published a revision to its methodology for rating insurance companies.
The revisions are published in an update to Fitch's global master insurance criteria, 'Insurance Rating Methodology'.
The more substantive revisions include an enhanced analysis of reserve adequacy, including new and expanded quantitative benchmarks, and a greater focus on how significant growth or declines in premium can negatively affect a rating. The section on reserve adequacy defines how the key elements of reserve profile, growth, experience and adequacy affect an insurer's rating. This revision includes the addition of various new quantitative benchmarks and three new ratios to measure reserve adequacy.
Relatively minor changes include additional details to better clarify certain circumstances under which insurers could be rated above their sovereign rating and a very minor wording update on contingent convertible securities.
No ratings are expected to change as the result of these updates.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Insurance Rating Methodology