JLT Re launches first JLT Re Viewpoint Report
10 December 2014
New York: JLT Re has today launched its first JLT Re Viewpoint Report - a detailed look at the changes and impact of the new A.M. Best Stochastic - based BCAR.
David Flandro, Global Head of Strategic Advisory, JLT Re, said, “There has been widespread interest regarding forthcoming stochastic-based enhancements to A.M. Best’s Capital Adequacy Ratio (BCAR) Model, since its announcement in early 2013. JLT Re has been closely involved with A.M. Best in the creation of the new stochastic BCAR, first as Towers Watson (TW) and most recently in collaboration with TW through the JLT Re-TW Alliance. JLT Re is therefore uniquely positioned among brokers to advise clients on the new model and to facilitate an understanding of the changes.”
A widening array of stakeholders has become focused on dynamic financial analysis, and A.M. Best’s new stochastic-based BCAR model will facilitate a more robust risk assessment in lockstep with this trend. This should benefit insurance and reinsurance buyers, shareholders, regulators and others who use A.M. Best’s analysis and ratings.
Ed Hochberg, Global Head of Analytics, Banking, and Advisory, JLT Re, said “Although balance sheet strength is the most important area of evaluation in the ratings process, a rating assignment also considers a carrier’s operating performance and business profile among other quantitative and qualitative measures.”
A.M. Best plans to publish a criterion paper in 2015 relating to the stochastic BCAR, allowing industry participants a 30-day period to comment on the proposed model.
David Flandro concludes, “While this is unlikely to have a material impact on the insurance sector as a whole, the new model could affect certain companies. As it is rolled out, JLT Re can help clients understand and develop their strategy in order to alleviate concerns, increase understanding and minimize any potential issues.”
To get a copy of the full report contact David Flandro - David.Flandro@JLTRe.com or Izzy Young - Isabella.Young@JLTRe.com.
The report will only be available to JLT Re clients until early 2015.
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Notes to Editors
Tel: (+44) 20 7558 3387/ (+44) 7920 586 032
About JLT Re Viewpoint
JLT Re Viewpoint is JLT Re’s regular series of publications and reports that comment on or give insight into key topics, occurrences or changes in the reinsurance and broking market place. JLT Re seeks to ask the questions that no-one else has asked and answer the questions that no-one else dares to answer. These publications and reports are aimed at helping clients to manage the diverse challenges they face today leveraging the specialty expertise of JLT Re.
About JLT Re
JLT Re a global reinsurance broker and consultancy that concentrates on geographies and specialty classes where it believes it can make a difference to clients.
JLT Re has close to 700 professionals across 14 countries, with the scale to deliver world class solutions whilst remaining small enough to differentiate clients from their peers. New clients and new employees continue to join, attracted by specialist broking, consultancy and analytical capability and increased market presence.
JLT Re is part of the Jardine Lloyd Thompson Group plc.
About Jardine Lloyd Thompson Group plc
Jardine Lloyd Thompson is one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT's client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 40 territories with more than 9,500 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
Head of Communications & Marketing, JLT Re