Posts Tagged ‘credit risk’



July 25th, 2018

Guy Carpenter Promotes King-Underwood to Head of Credit, Bond and Political Risk Practice, International

Posted at 6:18 PM ET

Guy Carpenter announced that Gregory King-Underwood has been promoted to Head of the Credit, Bond and Political Risk Practice of Guy Carpenter International, with immediate effect. He will report to James Nash, President of Guy Carpenter International.

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December 22nd, 2016

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)Insurance: Part II

Posted at 1:00 AM ET

krohn_jeff_photo_crop-sm1tedeschi_john_photo_sm21Jeff Krohn, Managing Director and John Tedeschi, Managing Director

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(Re)insurance markets sold close to USD 8 billion of government sponsored entities (GSEs) mortgage credit risk transfer from 2013 to 2016 year-to-date, with significantly more planned on a consistent basis. A robust global credit risk transfer market is now in full-effect; recent transactions include the Credit Insurance Risk Transfer and Agency Credit Insurance Structure (re)insurance purchased by Fannie Mae and Freddie Mac, and capital bond issuances from Fannie Mae’s Connecticut Avenue Securities and Freddie Mac’s Structured Agency Credit Risk.

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December 21st, 2016

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)Insurance: Part I

Posted at 1:00 AM ET

krohn_jeff_photo_crop-smtedeschi_john_photo_sm2Jeff Krohn, Managing Director and John Tedeschi, Managing Director

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The global financial crisis of 2008 exposed the US mortgage industry, taxpayers and the global capital markets to the full loss potential of residential mortgage credit risk. A total shakeup of the US housing sector was the result: a return to prudent underwriting criteria; market standardization in product; Private Mortgage Insurer Eligibility Requirements (PMIERs); and a Federal Housing Finance Agency (FHFA) directive that mandates government sponsored entities (GSEs) Fannie Mae and Freddie Mac to begin transferring credit risk on the hundreds of billions of dollars of US mortgages issued each year.

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January 25th, 2016

Developments in Asia Pacific: Indonesia

Posted at 1:00 AM ET

The average balance of payments in Indonesian reinsurance transactions over the past five years has been in a deficit of IDR5.65 trillion (USD455 million) per year. This has been a point of frustration for the Indonesian government. As such, the Indonesia Financial Services Authority (OJK) has instructed insurers to retain more risk and to reinsure more business with domestic reinsurers, including the recently-formed state reinsurer, Indonesia Re, to “improve and optimize capacity in the country.” The OJK has also encouraged all domestic reinsurers to obtain an international rating in order to improve competitiveness with foreign reinsurers. However, it is anticipated that high cessions to other unrated, domestic companies will increase credit risk charges and pressure capital adequacy ratios.

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December 23rd, 2015

Update on China Counterparty Risk Charges for Offshore Reinsurers: Part II

Posted at 1:00 AM ET

eva-zheng-sm1001graham-jones-951Eva Zheng and Graham Jones

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It is anticipated that the China Insurance Regulatory Commission (CIRC) will recognize cash deposits (including premiums withheld), letters of credit (LOC) and certain other forms of collateral. LOCs must be issued by domestic banks with a capital adequacy ratio of no less than 11 percent or by overseas financial institutions with credit ratings equal to or higher than AA-. Cedents will be required to report and re-value their counterparty risk on a quarterly basis and adjust collateral positions accordingly.

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December 22nd, 2015

Update on China Counterparty Risk Charges for Offshore Reinsurers: Part I

Posted at 1:00 AM ET

eva-zheng-sm100graham-jones-95Eva Zheng and Graham Jones

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China’s developing insurance market is a potential bright spot for growth in an otherwise challenging landscape for global reinsurers. Driven by a maturing economy and expected increases in household penetration ratios, property/casualty insurance premium, totaling USD 121.6 billion in 2014 (1), is projected to increase to roughly USD 300 billion by 2030 (2).  

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February 10th, 2015

Managing Counterparty Risk

Posted at 1:00 AM ET

Guy Carpenter helps our clients manage the specific counterparty risk elements associated with collateralized markets. The credit analysis of collateralized markets is different than the analysis of a traditional reinsurer.

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August 14th, 2014

Guy Carpenter Launches MetaRisk® 7.3

Posted at 6:30 AM ET

Guy Carpenter today announced the release of MetaRisk® 7.3, the latest version of the firm’s premier risk and capital management decision-making tool.

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February 20th, 2013

Guy Carpenter Launches MetaRisk® 7.1

Posted at 6:00 AM ET

Guy Carpenter today announced the release of MetaRisk® 7.1, the latest version of the firm’s premier risk and capital management decision making tool. The platform offers access to a variety of new features and enhancements that will improve usability, increase overall functionality and enable the development of more accurate and efficient risk and capital models.

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