Certified Reinsurers

In accordance with Ga. Reg. 120-2-78-.08, any unauthorized assuming insurer that meets the Department’s requirements may qualify as a Certified Reinsurer. Depending on the financial strength rating granted by the Department, which is based in part upon Table 1 below, a Certified Reinsurer may be allowed to post less than 100% collateral and still enable an authorized insurer to qualify for full reserve credit with respect to reinsurance cessions to the Certified Reinsurer in the amounts allowed in Table 2 below.

An assuming insurer may become a certified reinsurer using either the Georgia Certification Application or the Georgia Passport Certification Application. 

  • The Georgia Certification Application should be used by assuming insurers that are not approved to operate as certified reinsurers by an NAIC Accredited Jurisdiction.  Once the assuming insurer submits the Georgia Certification Application, the Department will notify the NAIC of the receipt of the application and will be considered the lead state for the purposes of evaluation and certification of the assuming insurer and presenting the application to Reinsurance – FAWG.

  • The Georgia Passport Certification Application should be used by assuming insurers when 1) the assuming insurer has been approved to operate as a certified reinsurer by an NAIC Accredited Jurisdiction; and 2) the certification has been accepted in accordance with the Reinsurance – FAWG process. 

Important Note: All applications for certification must be posted on the Department’s website for at least 30-days prior to the Commissioner taking final action upon the application.  Consequently, applicants should file applications with the Department as far ahead of the desired certification date as possible.

Table 1 - Financial Strength Rating Requirements

Ratings Best S&P Moody's Fitch

Secure – 1

A++

AAA

Aaa

AAA

Secure – 2

A+

AA+, AA, AA-

Aa1, Aa2, Aa3

AA+, AA, AA-

Secure – 3

A

A+, A

A1, A2

A+, A

Secure – 4

A-

A-

A3

A-

Secure – 5

B++, B+

BBB+, BBB, BBB-

Baa1, Baa2, Baa3

BBB+, BBB, BBB-

Vulnerable – 6

B, B-C++, C+, C, C-, D, E, F

BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, R

Ba1, Ba2, Ba3, B1, B2, B3, Caa, Ca, C

BB+, BB, BB-, B+, B, B-, CCC+, CC, CCC-, DD

 

Table 2 - Collateral Requirement for Certified Reinsurers

Financial Strength Rating granted by the Department Minimum Amount Withheld for Full Credit
Secure-1 0%
Secure-2 10%
Secure-3 20%
Secure-4 50%
Secure-5 75%
Vulnerable-6 100%