Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2013
09

GMIs' enjoy stable ratings, says S&P

Open-access content Monday 16th September 2013 — updated 5.13pm, Wednesday 29th April 2020

Global multiline insurers (GMIs) display better credit quality than other insurance groups or companies, the Standard & Poor ratings agency said today

The Global multiline insurers' robust position and improving capital translate into stable ratings report said that this type of insurers have strong competiveness and capital support, which encourages stable ratings. 

Standard & Poor believes these strengths come from GMIs' wide geographic and product diversification and generally 'very strong' market positions, which support earnings.

The ratings agency said: 'Our ratings on GMIs are still stronger than the average for all insurers we rate, and only three outlooks are negative compared with four at the end of last year. The negative outlooks reflect sovereign or group level issues rather than concerns over those GMIs' insurance operations.'

Over the past 18 months the GMIs' capital positions continued to improve, and remain a rating strength. However, low interest rates continue to dampen GMIs' profitability, particularly from life insurance business. 

'Our economists predict a slight increase in long-term interest rates between 2013 and 2015 in the US, UK, Germany and Japan, which might ease the pressure on earnings,' Standard & Poor continued. 

'On the other hand, we see mixed trends in the growth of assets under management and new-business margins, depending on the region and product line.'

Looking at non-life insurance, the agency said it saw rate increases in selected product lines in several regions. Although, GMI's tend to be ahead in this segment, 'we cannot rule out setbacks,' it warned. 

Standard & Poor currently rate eight of the nine 'global systemically important insurers' (G-SII), that the Financial Stability Board and the International Association of Insurance Supervisors published in July this year. 

'The implications for G-SIIs are still unclear. But we believe that from 2019, potentially higher capitalisation requirements and stricter supervision could influence our ratings on insurance groups classified as G-SIIs,' it said.

This article appeared in our September 2013 issue of The Actuary.
Click here to view this issue
Filed in:
09
Topics:
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ