ERM Scorecard

Out of 241 global insurers and reinsurers ranked in Standard & Poor’s (S&P’s) first enterprise risk management (ERM) scorecard, 81% of insurers and reinsurers received an “adequate” ranking for their ERM programs in 2006, whereas only 3% received an “excellent.”

Thirty-eight per cent of the companies surveyed received a grade of strong (35%) or excellent (3%).

“Global reinsurers, such as Swiss Re and Munich Re, both of which were rated as “strong”, have invested in ERM over an extended period, typically longer than their Bermudian peers,” an S&P’s release says. “Given the diversity of their risks and their global reach, they have the greatest need to do so, and attaining the highest ERM designation is more challenging as a result.”

S&P’s rankings of 25 reinsurers were as follows:

* Excellent: Manulife Financial Corp., PartnerRe, and RenaissanceRe Holdings Ltd.;

* Strong: ACE Tempest Re, Arch Capital Group Ltd., Aspen Insurance Holdings Ltd., Endurance Specialty Holdings Ltd., Hannover Re, General Re, Munich Re, National Indemnity Co., Platinum Underwriters Holdings Ltd., and Swiss Re;

* Adequate: Amlin Bermuda Ltd., Allied World Assurance Co., AXIS Capital Holdings Ltd., Catlin Insurance Co. Ltd., Converium, Everest Re, Folksamerica Reinsurance Co., Harbor Point Re Ltd., Lloyd’s, and Max Capital Group Ltd.; and

* Weak: Caisse Centrale de Reassurance, and Odyssey Re.