Advanced Insurance Company Analysis - Warning Signals

Analytic Overview: Section aims; this section identifies key themes and credit issues for exposures to insurance companies. Signs of Distress: Recurring themes for insurers getting into distress in an external environment; internal weaknesses and contagion risk, Implications of distress for different stakeholders: policyholder priority, diverging recovery prospects in distressed insurers and holding companies; overview of legal processes for failed insurers. Operating Environment: this section focuses on key macro-economic and sector trends, which are likely to erode creditworthiness. Management and Shareholders: this section focuses on management and strategy and risk management challenges in troubled markets. Business Risk: this section focuses on challenged business models and insurance companies with significant exposure to losses from their operations. Financial Risk: this section will focus on the adequacy and quality of capital, liquidity and financial flexibility.