Rating agency clarifies stance on government support for troubled insurers

Rating agency Moody’s has clarified how it factors governmental support for struggling insurers into its ratings

The agency has said it generally does not presume that a government will provide direct support in the event that insurer becomes troubled, even if the insurer maintains a large share of its market.

However, it does factor in the prospect of government support in cases where a government has provided long-term support through a substantial ownership program. Moody’s said it considers these insurers a government-related insurer.