Now Open for Comment: Kroll Bond Rating Agency's Captive Insurance Methodology

Kroll Bond Rating Agency (KBRA) has released its proposed methodology for rating captive insurance companies.

The methodology describes KBRA's process for assessing the financial strength of captive insurers. KBRA defines a captive insurance company as an entity whose primary business is to accept the underwriting risk of its owner and that is licensed and regulated under its domiciliary jurisdiction's captive legislation.

The captive insurance company rating methodology incorporates both quantitative and qualitative analysis of the captive insurer as well as an evaluation of the strategic importance of the captive insurance company to its owners and whether its owner enhances or diminishes the financial strength of the captive insurer. The quality of capital, reserving practices, leverage, reinsurance, operating fundamentals, regulatory environment, risk management, and sovereign risk are among the factors considered in KBRA's captive insurance ratings approach.

The proposed methodology is available for comment on the KBRA website through Friday, August 18, 2017. Access the proposed methodology.

Analytical Contacts:

Carol Pierce, Director
(646) 731–3307
E-mail

Andrew Edelsberg, Managing Director
(646) 731–2371 
E-mail

Van Hesser, Senior Managing Director
(646) 731–2305
E-mail

Captive.com articles leading up to this event include "KBRA Announces New Captive Rating Service" and "Kroll Bond Rating Agency Names Carol Pierce as Director of Captives."