An Agusto & Co. Insurance rating assesses the financial condition of an insurer as well as its ability to meet claims obligations on a timely basis in the short term.

In assessing insurers, Agusto & Co reviews the general economy as well as the insurance industry in order to better measure how issues and events influence individual firms in the industry. Quantitative issues considered in rating insurers include: Profitability of underwriting business, Cash flow and liquidity, Exposure and risk retention, Capital adequacy, Management of investments, Ownership, management and staff, Market share etc. Qualitative factors reviewed include: Industry characteristics, Ownership structure, Strength of internal processes, Human Capital, Marketing, Finance, Technology, Procedures for monitoring compliance with these processes, Quality of management and staff etc.

The Rating process commences with the Insurer soliciting a rating by executing a letter of engagement after which an information gathering questionnaire is dispatched to the Insurer to gather more information about the Company. Finally, we meet with the management/key personnel of the Insurer to obtain a good feel for the strategic initiatives being undertaken by the insurer.  All of these are factored in producing a draft rating report which the company is expected to review with a view to

a) correcting factual errors
b) removing confidential information which the company would prefer not to disclose and
c) agreeing on the opinion expressed.

A final rating report is thereafter produced which would incorporated corrections made to the draft rating report as well as the rating assigned to the insurer.

:: Rating Definition :: Tenure of Ratings ::