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guidance about how to interpret the results in each column of data (i.e. is a higher number better?). The functionality is further enhanced by tracking the same metrics for each carrier in the matrix –
the comparative format provides an opportunity for a carrier’s results to be viewed in the context of peers. While no carrier is identical in their lines of business, loss experience, geographic footprint,
etc., and not all elements of a carrier's performance are captured here, the general trends and comparative context can still be helpful.
Frequently Asked Questions
Question: How did we pick the metrics that we track?
- AM Best and S&P rate most carriers, but Fitch and Moody’s don’t rate as many. We’re trying to keep the matrix to one page in width so it is easier to use. With the page size constraint in mind,
viewing AM Best and S&P ratings, as well as their Outlook guidance, allows rating agency perspective to be presented and still create an opportunity for a focus on metrics that give additional insight
into how an organization is performing.
- The metrics that we track were selected by Kelly Superczynski, Head of Aon Benfield’s Global Rating Agency Advisory Practice. Her team coaches insurers on how to present information to the
four rating agencies. In January 2009, we asked her to help us build a tool that clients could use to gain greater insight into how carrier financials work and how a carrier is performing. The matrix is
the product of that endeavor. We’ve been producing it every 60 days or so since then.
Question: Why don't we include CDS spreads?
- CDS spreads are not available for a lot of carriers, so we focus on metrics that are available.
Please review all Mandatory Cautions that appear at the bottom of every page of the matrix....
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This document was uploaded on 03/30/2014.
- Spring '14