[July 27, 2018]

A.M. BestTV: How A.M. Best Analysts Evaluate Mortgage-Related Insurance-Linked Securities Transactions

In this ^A.M.BestTV episode, Emmanuel Modu, managing director, insurance-linked securities, and Wai Tang, director, insurance-linked securities, A.M. Best, examine how the rating agency evaluates mortgage-related insurance-linked securities (MILS) transactions. Click on http://www.ambest.com/v.asp?v=mortgageils818 to view the entire program.

Mortgage-related insurance-linked securities transactions are relatively new to the market, according to the episode, and are collateralized and used as a substitute for traditional reinsurance.

"One important factor in analyzing mortgage insurance is risk-in-force," said Modu. "Risk-in-force determines the maximum exposure faced by mortgage insurers to losses. In other words, risk-in-force equals mortgage insurance coverage percentage plus unpaid principal balance."

"A.M. Best rates mortgage-related insurance-linked securities by using the following information: (1) transactions that will be assigned a Long-Term Issue Credit Rating based on A.M. Best's 21-point scale; (2) methodology and criteria; (3) information review; and (4) qualitative considerations," said Tang.

To view this entire webinar visit http://www.ambest.com/webinars/mortgageils18.

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• How Insurers Are Managing Multiple Distribution Channels: The shift of sales to multiple, diverse channels affects areas such as underwriting, technology and the overall agent experience: http://www.ambest.com/v.asp?v=distributionchannels718.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180727005548/en/

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