BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

S&P to introduce runoff ratings system


NEW YORK--New York-based rating agency Standard & Poor's Corp. plans to introduce a new ratings system for runoff insurers and reinsurers later this year.

The new ratings criteria--expected to be formally launched within the next three months--will be used to gauge the likelihood of recovering principal from reinsurance companies. The ratings scale will mirror the one S&P currently uses for recovery ratings in the leveraged finance world, said Peter Hughes, a London-based vp for the agency.

On that scale, a 1+ rating denotes the highest expectation of full recovery of principal in the event of a default. A rating of 5 is the lowest, indicating a zero to 25% chance of recovery of principal.

The ratings system, which will apply to companies globally, will help bring transparency to the runoff market, Mr. Hughes said.

"We are interested to see what the reaction is," he said.