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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 20, 2020 10:52 AM (EDT)
AM Best has released its 2020 Country Risk Assessment Reports, providing economic, political and financial system risk assessments on 137 countries, including one new report on Georgia. There was also one movement on an existing tier, in which Tunisia moved to a CRT-5 from a CRT-4.
AM Best determines country risk levels by assessing country-specific factors that could adversely affect an insurer’s ability to meet its financial obligations. Country risk is evaluated and factored into all AM Best ratings. As part of evaluating country risk, AM Best identifies the various factors within a country that may directly or indirectly affect an insurance company. Countries are placed into one of five tiers, ranging from CRT-1 (Country Risk Tier 1) — denoting a stable environment with the least amount of risk — to CRT-5 (Country Risk Tier 5) — for countries that pose the most risk, and therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
The Country Risk Tier of CRT-4 for Georgia reflects a moderate level of political risk, and high levels of economic and financial system risk. The Country Risk Tier of CRT-5 for Tunisia reflects high levels of political and financial system risk, and a very high level of economic risk.
This update is part of AM Best’s annual review of its country risk assignments.
Country risk is incorporated into the analysis of balance sheet strength, operating performance, and the business profile for all rating units. Analysis is done on each rating unit’s country of domicile as well as country of operations (regulation, asset, and insurance exposure). Please visit AM Best’s Country Risk center for the complete listing of Country Risk Tiers and country-specific reports.
For more information about AM Best’s country risk methodology, “Evaluating Country Risk,” please visit the methodology section of AM Best’s website.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.