As companies continue to navigate the repercussions of the COVID-19 pandemic, it is important that they understand the pandemic’s impact on risk-based capital (RBC). Insurers are dealing with COVID-19’s effects on assets and liabilities, both of which can affect capital levels, according to Robert Lumia, Senior Vice President, and David Domino, President, U.S. Segments, Guy Car ... Continue Reading »
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Standard & Poor’s Outlook on COVID-19: Overview
GC Capital Ideas recently featured a four-part article on Standard & Poor's (S&P) assessment of COVID-19's impact across the insurance and reinsurance markets. The series discusses the pandemic's effect on U.S. property & casualty (P&C) insurance, U.S. life insurance, global reinsurance and stress test modeling. Global Reinsurance Sector S&P recently ... Continue Reading »
Risk-Based Capital Stress Testing: Part IV
Guy Carpenter has developed a model that mirrors aspects of how rating agencies perform stress tests on accident and health company financials. The test looks at the effects COVID-19 has on the marketplace and provides benchmark comparisons of company capital levels by estimating changes to company-level RBC ratios based on stresses to both assets and liabilities. ... Continue Reading »
Risk-Based Capital Stress Testing: Part III
As companies continue to navigate the repercussions of COVID-19, it is important that they understand the pandemic’s impact on risk-based capital (RBC). ... Continue Reading »
Risk-Based Capital Stress Testing: Part II
The Impact for Life & Health Insurance Companies COVID-19 is likely having an impact on insurance company capital. Companies are closely monitoring potential decreases in assets as well as liability changes in an effort to protect their capital and surplus positions. Rating agencies are also monitoring these developments to try to identify companies whose financial ... Continue Reading »
Risk-Based Capital Stress Testing: Part I
As companies continue to navigate the repercussions of COVID-19, it is important that they understand the pandemic’s impact on risk-based capital (RBC). Insurers are dealing with COVID-19’s effects on assets and liabilities, both of which can affect capital levels. ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Four: Stress Testing
Standard & Poor's (S&P) continues to refresh its asset stress test, which reflects real-time insights on rating migration and default risk. The reinsurance, property & casualty (P&C) and life teams all conducted asset stress tests as the markets were starting to show dislocation in late February, as well as in mid-March, when the equity market was close to its ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Three: U.S. Life Insurance Sector Outlook Remains Stable
S&P maintains a stable outlook for the U.S. life insurance sector, and assigned a stable outlook to over 90 percent of life insurers. The rating agency views asset risk as the most significant and immediate concern for the sector, over other factors relating to equity market volatility, near-zero interest rates and increased mortality risk. ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part Two: U.S. Property & Casualty Insurance Sector Outlook
As the COVID-19 pandemic continues and its impacts across insurance and reinsurance markets become increasingly clear, Standard & Poor's (S&P) is maintaining its stable outlook for the U.S. property & casualty (P&C) insurance market and it assigned a stable outlook to 95 percent of P&C insurers. Thus far, the only ratings action S&P has taken is to ... Continue Reading »
Standard & Poor’s Outlook on COVID-19 Part One: Global Reinsurance Sector
Standard & Poor's (S&P) recently changed its outlook for the global reinsurance sector to negative from stable, as it anticipates a number of negative rating actions and increasingly difficult business conditions for the sector over the next 12 months, according to a recent article from Guy Carpenter. S&P assigned a stable outlook to over 80 percent of global ... Continue Reading »
