The Insurance and Pensions Authority has today issued a consultation paper and technical specification on valuation and capital adequacy
for life insurers.
The Revised Capital Adequacy
Standard aims to assist the implementation of a capital adequacy
framework that will ensure effective coverage of risk exposures of the IIFS and allocation of appropriate capital to cover these risks, based predominantly on the Standardised Approach.
At the end of December 2013, the Tier-I capital adequacy
ratio was 7.
It is also noteworthy that the Russian central bank is planning to introduce capital adequacy
requirement for banks in compliance with Basel III standards from January 1, 2014.
The updated report analyzes the recent changes to the market fundamentals and resource adequacy
challenges facing Alberta, many of which were present during the 2011 review.
The new rules stipulate the capital adequacy
ratio of any domestic banks to be over 12.
At first glance it appears ironic that plaintiffs have enjoyed a higher rate of success in adequacy
cases than in those grounded in equity.
As noted, the Framework would form the basis upon which the Agencies develop proposed revisions to their existing risk-based capital adequacy
The company enjoys extremely strong risk-adjusted capital adequacy
, with a capital adequacy
ratio of 194% at year-end 2003 as measured by Standard & Poor's Ratings Services model.
The extremely higher levels of capital adequacy
seen in some cases historically are unlikely to be a management goal going forward.
Best's primary rating concern has been the adequacy
of Liberty Mutual's loss reserves and the potential impact of further adverse loss reserve development on earnings.
The report includes satisfaction ratings in the areas of: i) ability to perform to specifications and expectations, ii) durability and length of life, iii) adequacy
of in-house controls and inspection processes, and iv) health, safety and environmental features and performance and is segmented by customer size.