Rating agency analysis increasingly considers your Solvency II implementation plans including associated strategic change, while your enterprise risk management (ERM) effectiveness is fundamental to both Solvency II and rating agency assessments. Solvency II may therefore impact your credit rating.
How are rating agencies responding to Solvency II and how can you seek to ensure that the impact on your rating is not negative?
The rating agencies' evaluation criteria are unlikely to significantly change as a result of Solvency II. However, it is important for your rating to engage with the rating agencies sooner rather than later, explaining how Solvency II implementation has strengthened your ERM capabilities and what adjustments to the strategy and make-up of your business you are planning. Poor communication could potentially negatively impact your rating.
PwC is helping a range of insurers to get to grips with the practicalities of Solvency II implementation. If you’d like to know more about how to manage the impact of Solvency II on your credit rating, please contact our specialists on the right of the page.