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TMCNet:  AM BestTV: Rated European Captives Demonstrate Solid Capitalization, Underwriting, Says AM Best Director

[December 05, 2018]

AM BestTV: Rated European Captives Demonstrate Solid Capitalization, Underwriting, Says AM Best Director

In this episode of AM BestTV, Mathilde Jakobsen, director of analytics, AM Best, said rated European captives often have higher concentrations of risk, but overall are well suited to their risks. Click on http://www.ambest.com/v.asp?v=europeancaptives1218 to view the entire program.

Jakobsen highlighted why European captives' risk-adjusted capitalization tends to be at a stronger level.

"The parent organizations of captives tend to be very supportive of keeping the capital levels very high," said Jakobsen. "Consequently, these captives can provide the high capacities that the parent organization needs, and absorb very significant losses without having to come back to the organization for more money."

Jakobsen also addressed the importance of a company's enterprise risk management level in AM Best's credit rating process.

"When AM Best assesses a company's enterprise risk management level, we look at its risk management capabilities relative to its risk profile under a number of categories like reserving, reinsurance and investment risks. We found captives tend to have very high-risk profiles; however, overall, we assessed captives as having appropriate capabilities versus their risk profiles," she said.

To access a copy of this special report, titled, "Best's Special Report: European Captives - Building Block Rating Considerations," visit http://www3.ambest.com/bestweek/purchase.asp?record_code=279973

Recent episodes of AM BestTV include:

  • It's 'Speed Dating' for Risk and Insurance tudents as Insurers Look to Connect: Insurers, faculty and students at Temple University's job fair said insurance and risk management students are finding an abundance of interviews and opportunities: http://www.ambest.com/v.asp?v=jobfair1218.
  • Fighting Wildfires Now a Year-Round Event, Says Wildfire Chief Executive Officer: David Torgerson, chief executive officer and founder, Wildfire Defense Systems, said the firm works for a variety of insurers and has seen a steady increase in calls to protect properties in 20 U.S. states: http://www.ambest.com/v.asp?v=privatefire1118.
  • Insurers Move to Mitigate Possible Loss of Passporting Rights, Says AM Best Senior Director: Catherine Thomas, senior director of analytics, AM Best, said insurers are preparing for the possibility that the United Kingdom will leave the European Union without securing agreements to protect cross-border insurance relationships: http://www.ambest.com/v.asp?v=brexit1118.
  • Wildfires Likely to Shake Up California's Homeowners Insurance Market, Say AM Best Analysts: Jason Hopper, associate director, and David Blades, senior research analyst, both with AM Best, said losses from the ongoing wildfires in California will put pressure on homeowners insurers: http://www.ambest.com/v.asp?v=ambcafires1118.

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at http://www.ambest.tv.

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.

Copyright © 2018 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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