2010 PLUS International Conference
Demystifying theFinancial Strength
of Insurance Companies
2010 PLUS International Conference
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
2010 PLUS International Conference
Discussion Focus Areas
• Rating Agency Competitive Landscape
• Key Rating Factors & Hot Buttons
• 3rd Party Issues & Viewpoints
• Insights & Predictions
2010 PLUS International Conference
• Rating Agency Competitive Landscape
Focus Area 1
Principal Rating Agencies
Financial Strength Ratings
Regulatory vs. Rating Agency Differences
2010 PLUS International Conference
• Key Rating Factors and Hot Buttons
Focus Area 2
Rating Process
Key Rating Factors
2010 PLUS International Conference
• 3rd Party Issues and Viewpoints on Rating Agencies
Focus Area 3
Reliance on Ratings
Assessment of Rating Agencies
Ratings Influence on Company Strategy
2010 PLUS International Conference
• Insights & Predictions
Focus Area 4
Future Changes to Rating Factors
Future Insurance Regulatory Changes
Financial Regulatory Reform
Key Takeaways
2010 PLUS International Conference
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.
2010 PLUS International Conference
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.
2010 PLUS International Conference
An Audience with A.M. Best
2010 PLUS International Conference
QUESTIONS &
ANSWERS
2010 PLUS International Conference
Many Thanks To…
• Phillip Blais
• Louise G. Crockett
• Dick Evans
• Elizabeth C. Malone
• Eric M. Simpson
• Doug Slape
Top Related