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AM BestTV: Rated European Captives Demonstrate Solid Capitalization, Underwriting, Says AM Best Director
[December 05, 2018]

AM BestTV: Rated European Captives Demonstrate Solid Capitalization, Underwriting, Says AM Best Director

In this episode of AM BestTV, Mathilde Jakobsen, director of analytics, AM Best, said rated European captives often have higher concentrations of risk, but overall are well suited to their risks. Click on to view the entire program.

Jakobsen highlighted why European captives' risk-adjusted capitalization tends to be at a stronger level.

"The parent organizations of captives tend to be very supportive of keeping the capital levels very high," said Jakobsen. "Consequently, these captives can provide the high capacities that the parent organization needs, and absorb very significant losses without having to come back to the organization for more money."

Jakobsen also addressed the importance of a company's enterprise risk management level in AM Best's credit rating process.

"When AM Best assesses a company's enterprise risk management level, we look at its risk management capabilities relative to its risk profile under a number of categories like reserving, reinsurance and investment risks. We found captives tend to have very high-risk profiles; however, overall, we assessed captives as having appropriate capabilities versus their risk profiles," she said.

To access a copy of this special report, titled, "Best's Special Report: European Captives - Building Block Rating Considerations," visit

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AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at View AM BestTV episodes at

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

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

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