Market Overview

A.M. Best Releases 129 Country Risk Assessment Reports; Adds Seven Countries

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A.M. Best has released its 2018 Country Risk Assessment Reports,
providing economic, political and financial system risk assessments on
129 countries, including seven new reports on Albania, Ethiopia,
Hungary, the Ivory Coast, (FYR) Macedonia, Sierra Leone and Tanzania. In
addition, five countries changed tiers; four improved and one moved
downward.

A.M. Best determines country risk levels by assessing country-specific
factors that could adversely affect an insurer's ability to meet its
financial obligations. Country risk is evaluated and factored into all
A.M. Best ratings. As part of evaluating country risk, A.M. Best
identifies the various factors within a country that may directly or
indirectly affect an insurance company. Countries are placed into one of
five tiers, ranging from "CRT-1" (Country Risk Tier 1) — denoting a
stable environment with the least amount of risk — to "CRT-5" (Country
Risk Tier 5) — for countries that pose the most risk, and therefore, the
greatest challenge to an insurer's financial stability, strength and
performance.

A Country Risk Tier of CRT-3 has been assigned to Hungary, reflecting
its moderate levels of economic, political and financial system risk. A
Country Risk Tier of CRT-4 has been assigned to Albania and (FYR)
Macedonia, reflecting their high level of economic and financial system
risk and a moderate level of political risk.

A Country Risk Tier of CRT-5 has been assigned to Ethiopia, the Ivory
Coast, Sierra Leone and Tanzania, reflecting high to very high levels of
economic, political and financial system risk. In addition, the country
risk assessments of Mauritius, Peru and Romania were moved to a CRT-3
from a CRT-4 due to improved economic, political and financial system
risk. Jamaica's country risk assessment was also improved to a CRT-4
from a CRT-5. In contrast, Oman's country risk assessment moved to a
CRT-4 from a CRT-3, largely due to increased economic and financial
system risks.

This update is part of A.M. Best's annual review of its country risk
assignments.

Country risk is incorporated into the analysis of balance sheet
strength, operating performance, and the business profile for all rating
units. Analysis is done on each rating unit's country of domicile as
well as country of operations (regulation, asset, and insurance
exposure). Please visit A.M. Best's Country
Risk
center for the complete listing of Country Risk Tiers and
country-specific reports.

For more information about A.M. Best's country risk methodology,
"Evaluating Country Risk," please visit the methodology
section
of A.M. Best's website.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

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

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