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COMMENTARY
Commentary: AM Best’s Credit Ratings and Country Risk FAQ – Why We Do Not Impose a Sovereign Ceiling on our Ratings

AM Best does not apply a sovereign ceiling on the insurance companies it rates, noting such a move would ignore a company’s ability to manage country risk by avoiding risk or by hedging, or by accepting what cannot be controlled and using counter measures such as additional capital, strong underwriting performance, or diversification.

   

Date Posted: September 23, 2024
Number of Pages: 5
Report: English
Translations:French
Data: Excel

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Commentary: AM Best’s Credit Ratings and Country Risk FAQ – Why We Do Not Impose a Sovereign Ceiling on our Ratings