Financial Strength Ratings
Financial Strength Ratings assess an insurance company's ability to meet policyholder obligations. However, the ratings are not recommendations to purchase or discontinue a policy, contract, or security issued by an insurance company, nor are they guarantees of financial strength.
Our rating methodology for life and non-life insurance companies entails assessing the companies on a standalone basis, as well as assessing the level of parent/government support that they receive.
We evaluate a company on the following criteria:
- Industry risk and business risks across segments
- Risk management systems
- Goals and strategies and projected business plan
- Parental support
Financial Strength Ratings does not take into account:
- Timeliness of payment or the likelihood of the use of a defence, such as fraud, to deny claims
- Any potential that may exist for foreign exchange restrictions to prevent policy obligations from being met (for insurance companies with cross-border or multi-national operations, including those conducted by branch offices or subsidiaries)
- The insurance company's ability to meet non-policy obligations (debt contracts)