OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has released its 2019 Country Risk Assessment Reports, providing economic, political and financial system risk assessments on 136 countries, including seven new reports on Botswana, Cameroon, Cook Islands, Greece, Mozambique, Namibia and Turks and Caicos. There were no movements on existing tiers.
AM Best determines country risk levels by assessing country-specific factors that could adversely affect an insurer's ability to meet its financial obligations. Country risk is evaluated and factored into all AM Best ratings. As part of evaluating country risk, AM Best identifies the various factors within a country that may directly or indirectly affect an insurance company. Countries are placed into one of five tiers, ranging from “CRT-1” (Country Risk Tier 1) — denoting a stable environment with the least amount of risk — to “CRT-5” (Country Risk Tier 5) — for countries that pose the most risk, and therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
The Country Risk Tier of CRT-3 for Cook Islands and Turks and Caicos reflects moderate levels of economic and political risks, and moderate to high levels of financial system risk. The Country Risk Tier of CRT-4 for Botswana, Greece and Namibia reflects their moderate to high levels of economic, political and financial system risks.
The Country Risk Tier of CRT-5 for Cameroon and Mozambique reflects high to very high levels of economic risk, and very high levels of political and financial system risks.
This update is part of AM Best’s annual review of its country risk tiers.
Country risk is incorporated into the analysis of balance sheet strength, operating performance and the business profile for all rating units. Analysis is done on each rating unit’s country of domicile as well as country of operations (regulation, asset, and insurance exposure). Please visit AM Best’s Country Risk center for the complete listing of Country Risk Tiers and country-specific reports.
For more information about AM Best’s country risk methodology, “Evaluating Country Risk,” please visit the methodology section of AM Best’s website.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
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