Fitch Ratings said it is considering incorporating the strength of an insurer's regulatory scheme into the methodology it uses to rate the financial health of insurance companies.
Fitch said it is seeking feedback from interested parties no later than Jan. 31, 2006. A final methodology report that incorporates any relevant market feedback is expected to be published in first-quarter 2006, Fitch said.
At its core, the agency explained, the new methodology aims to better define how the two most significant drivers of credit risk–the probability of default and recovery given a default–impact ratings, and how the two are weighted in the context of "expected loss."
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
