NU Online News Service, May 18, 3:45 p.m. EDT
Moody's Investors Service said it will update its global methodology for rating insurers to provide more consistency and transparency to its rating process.
The changes apply to both property & casualty and life insurers, Moody's said.
Moody's said one change will be the rating agency's "explicit recognition of the insurer's local operating environment, which--together with the company's fundamental business and financial credit profile--helps to better explain Moody's insurance ratings in developing markets."
The rating agency said another update includes the removal, addition, and changes to some metrics used to analyze rating factors such as market position, asset quality, capital adequacy, profitability, liquidity, and financial flexibility.
Moody's said the updated methodologies are not expected to result in rating changes for insurers.
Moody's group managing director Ted Collins said, "The updated global insurance methodologies highlight the key factors that drive our ratings of insurers around the world, maintaining the same framework to assess the insurers' business and financial profiles."
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