Achieve Rating Goals
Achieve your rating goals by delivering strategies to navigate ratings criteria and processes — including assisting new company formations.
Ratings Agency Advisory
Why is Rating Agency Advisory Important?
As market dynamics and rating agency criteria evolve, insurers need to be better informed of the key metrics that impact their ratings. Insurer balance sheets face mounting pressure from unrealized losses due to rising interest rates, volatile equity market performance and increased frequency and severity of catastrophe events. In response, Aon’s Rating Agency Advisory provides guidance to help insurers make better decisions to optimize capital and demonstrate to rating agencies how they plan to drive profitability.
How Aon Can Help
Aon’s Rating Agency Advisory team understands and analyzes the rating process, methodology and criteria from AM Best, Demotech, Fitch, Kroll, Moody’s and Standard & Poor’s.
We help insurers:
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Optimize Capital
Optimize capital and develop management strategies through capital adequacy analysis using AM Best’s BCAR, S&P Capital and NAIC RBC, as well as measuring the cost/benefit of reinsurance capital.
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Benchmark Rating Position
Benchmark your rating position with Aon’s proprietary databases and value-added research and insights.
We are involved in over 200 rating assignments per year that enable us to monitor the changing rating criteria and emerging hot topics as well as understand the treatment of unique rating circumstances.
Aon’s Rating Agency Advisory works alongside our clients to:
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01
Discover Capital Position
Understand how it compares to your peers and what it means for your rating
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02
Develop Desired Ratings
Develop your desired rating objectives and capital optimization goals
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03
Deliver Actionable Strategies
Deliver actionable strategies to improve your capital position and achieve your target rating
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04
Review New and Evolving Criteria
Review new and evolving criteria on an ongoing basis to make agile adjustments
Why Work with Us
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Team Experience
More than 150 years of combined team experience helping clients achieve their rating objectives with actuary, auditor, CPA, CFA and ratings analyst backgrounds — plus insider perspective from 25 years of experience working at five different rating agencies.
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Rating Agency Relationships
Long-standing relationships with all rating agencies, including AM Best, Demotech, Fitch, Kroll, Moody’s and S&P.
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Capital Adjustments
Discovered over $22 billion of rating agency capital adjustments for insurance clients, including over $2.5 billion for regional and mutual insurance clients in the U.S. risk-based capital model.
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Well-Versed in Accouting Guidelines
Well-versed in accounting guidelines including GAAP, U.S. Statutory and IFRS; rating agency capital models such as S&P’s Risk Based Capital (RBC) and AM Best’s BCAR; and regulatory frameworks including Solvency II, BSCR and U.S. risk-based capital (RBC).
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Knowledge of Marketplace
Knowledge of the marketplace, with industry research papers including Catastrophe Risk Tolerance Study, Evolving Criteria, Observations on A- Rating Activity and rating agency criteria updates.
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ESG Methodology
Familiarity with rating agencies' ESG methodologies and questionnaire forms to help insurers provide the right quantitative and qualitative information to improve their ESG rating.
21.5B
$21.5B of rating agency capital adjustments for clients
