DBRS Morningstar Publishes Updated Methodology for Rating Insurance Companies and Insurance Organizations

DBRS Morningstar published an updated version of its “Global Methodology for Rating Insurance Companies and Insurance Organizations” (the Insurance Methodology).

DBRS Morningstar has conducted a periodic review of the Insurance Methodology. This update supersedes the previous version published on August 31, 2022, and is effective as of July 14, 2023. DBRS Morningstar deems the update not to be material and has determined that no ratings are expected to change as a result of this update.

The updates to the Insurance Methodology include several clarifications about the various measures of profitability used in the assessment of earnings ability, as well as the more comprehensive description of the factors assessed in the liquidity building block. In addition, the updated version of the Insurance Methodology includes a clarification that the financial leverage ratio used in the capitalization building block is calculated as a four-quarter rolling average.

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DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].