Taking Charge of the Rating Agency Meeting

Careful preparation, clear and compelling financials, and a good story are among the tips Litmus Analysis recommends for carriers looking to make the most of the annual management meeting with their rating agency.

In a new release from Litmus, Senior Consultant Analyst Rowena Potter, a former analyst at S&P for 20-plus years, shares some advice for companies seeking to take charge of the rating agency meeting:

• Allow plenty of time to prepare before the management meeting, making sure you understand the rating agency’s methodology so you can successfully explain your company’s strengths and address any perceived weaknesses.
• Make sure the agency capital model is completed accurately and that your forecasts are robust. Prospective earnings are crucial, but you have to make a compelling case for them. While your track record is important, so is showing how your market position, competitive advantages and underwriting controls will deliver the forecasted results.
• Make your presentation comprehensive, with a message that is clear and memorable. Don’t rely on verbal comments or responses to the analysts’ questions; be sure to cover all key points in the presentation slides. Highlight core competencies and strengths so the rating committee can get the full picture. If you believe you have a good story to tell on any part of the analysis, put the message in the slide heading and use memorable anecdotes to illustrate any subjective points.

See the full release for more tips from Litmus Analysis: “You and Your Rating Agency—Top Tips.”