Press Release - DECEMBER 05, 2018
AM BestTV: Rated European Captives Demonstrate Solid Capitalization, Underwriting, Says AM Best Director
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 05, 2018
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 .
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