|
|
 |
|
Viewing report
|
|
|
|
Bond Insurers Show Varying Sensitivity To Health Care Stress Scenario Feb 05
Standard & Poors, Feb 2005
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
Abstract
While bond insurers show varying degrees of sensitivity to severe stress in the health care sector, ranging from outright immunity to extreme sensitivity, the majority of companies have managed their health care exposure such that they can experience stress without finding their ratings threatened. This conclusion is the result of a study designed to identify which insurers are most sensitive to a health care stress scenario and why. The research shows that the key to successfully avoiding extreme stress is to set prudent limits for single issuer and aggregate health care exposure and to operate with a capital cushion that can absorb unexpected events. Those few insurers that are largely or completely insensitive have practiced strict adherence to policies that...
Companies mentioned in this report are: General Electric Capital Corp.,Financial Guaranty Insurance Co.,Assured Guaranty Municipal Corp.,Radian Reinsurance Inc.,MBIA Insurance Corp.,Assured Guaranty Corp,Radian Asset Assurance Inc.,RAM Reinsurance Co Ltd.,ACA Financial Guaranty Corp.,Radian Group Inc.,Assured Guaranty Re Ltd.,Syncora Guarantee Inc.,Syncora Guarantee Re Ltd.,Sompo Japan Financial Guarantee Insurance Co. Ltd.
|
|
|
|
