2010 PLUS International Conference Demystifying the Financial Strength of Insurance Companies.

2010 PLUS International Conference

Demystifying theFinancial Strength

of Insurance Companies


The Round-up…

MODERATOR:• Philip L. Blais, President & Owner, Blais Excess & Surplus Agency of

Texas Ltd.

PANELISTS:• Louise G. Crockett, CPCU, Vice President, Senior Marketing Executive,

Wells Fargo Insurance Services USA

• Dick Evans, Chairman & CEO, Cullen/Frost Bankers, Inc.

• Elizabeth C. Malone, CFA, Senior Vice President, Wunderlich Securities, Inc.

• Eric M. Simpson, CPA, Senior Vice President, Towers Watson

• Doug Slape, CFE, CISA, Chief Analyst, Texas Department of Insurance


Discussion Focus Areas

• Rating Agency Competitive Landscape

• Key Rating Factors & Hot Buttons

• 3rd Party Issues & Viewpoints

• Insights & Predictions


• Rating Agency Competitive Landscape

Focus Area 1

Principal Rating Agencies

Financial Strength Ratings

Regulatory vs. Rating Agency Differences


• Key Rating Factors and Hot Buttons

Focus Area 2

Rating Process

Key Rating Factors


• 3rd Party Issues and Viewpoints on Rating Agencies

Focus Area 3

Reliance on Ratings

Assessment of Rating Agencies

Ratings Influence on Company Strategy


• Insights & Predictions

Focus Area 4

Future Changes to Rating Factors

Future Insurance Regulatory Changes

Financial Regulatory Reform

Key Takeaways


2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.60x

0.80x

1.00x

1.20x

1.40x

1.60x

1.80x

2.00x

NWP/Statutory Capital & Surplus

NWP/Surplus Leverage

Source: SNL FinancialNotes: NWP/Statutory Capital & Surplus for WSI Professional Liability Underwriters Index in 2000-2009.


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Operating ROAE

Return on Equity Trend

Source: SNL FinancialNotes: ROAE for WSI Professional Liability Underwriters Index in 2000-2009.


An Audience with A.M. Best


QUESTIONS &

ANSWERS


Many Thanks To…

• Phillip Blais

• Louise G. Crockett

• Dick Evans

• Elizabeth C. Malone

• Eric M. Simpson

• Doug Slape

2010 PLUS International Conference Demystifying the Financial Strength of Insurance Companies.

Documents

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