Alliant Insurance Services report identifies “most dangerous” and “most improved” countries for business operations

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Alliant’s Emerging Markets Group publishes guide rating insurable political and economic risk in 65 countries

Alliant Insurance Services
The 2013 ratings guide introduces the first international exposure ratings from a company perspective, a ground-breaking way to look at political and economic risks.

A comprehensive report rating the insurable political and economic risk in 65 countries has been released by the Emerging Markets Group of Alliant Insurance Services (http://www.alliant.com), the nation’s largest specialty insurance brokerage firm.

According to the 2013 Political & Economic Risk Ratings Guide, the four most dangerous countries for foreign-owned business operations are Mali, Argentina, Thailand, and Vietnam. The list of the most improved countries for business over the last 12 months is topped by Nigeria, Russia, and Brazil.

The annual rating guide, which has been published by the Emerging Markets Group since 2003, provides an overview of the full range of political and economic risk tracked by Alliant in 175 countries. The ratings focus on the structural risks facing investors in those countries, quantifying the likelihood of specific events resulting in business losses.

“The 2013 ratings guide introduces the first international exposure ratings from a company perspective, a ground-breaking way to look at political and economic risks,” notes Dr. Michel Léonard, Chief Economist and Senior Vice President for the Emerging Markets Group.

“Previously political and economic risk analysis was always expressed only from a country point of view, even though the corporate and financial users of such information think in terms of specific companies,” he explained. “Now, by looking at a company’s unique geopolitical footprint and providing a true sense of each firm’s international exposure, our ratings can provide users with a tool that speaks their own language.”

In addition, he said, this year’s guide expands the industry-specific political and economic risk ratings beyond the energy sector to also include materials, industrials, and financial institutions. “The addition of these industries enabled us to expand a country’s macro risks to account for the specific vulnerabilities and loss profiles of other industries that are especially vulnerable to global macro economic trends and country risk,” Dr. Léonard said.

Alliant’s Emerging Markets Group is a leading provider of credit and political risk analysis and mitigation solutions. Consisting of brokers, risk analysts, lawyers, and former government officials that pioneered the use of systematic quantitative risk assessment to develop political and credit risk mitigation solutions, it currently manages political and trade credit insurance programs covering more than $15 billion of assets in 70 countries.

The group’s systematic methodology combines proprietary company risk ratings, balance sheet analysis, and loss modeling to deliver cost-effective risk mitigation and insurance solutions that meet client-specific goals and objectives. Its analytics database, the most comprehensive of its kind, includes more than 3,000 ratings tracking global political and economic risk from 2003 to 2013.

The 2013 Political & Economic Risk Ratings Guide is available on the Alliant Insurance Services web site at http://www.alliant.com. In addition, Alliant’s full array of ratings and indices are available on the Bloomberg Terminal (ABEM -GO-) or by contacting Alliant Emerging Markets.

About Alliant Insurance Services

Headquartered in Newport Beach, CA, Alliant Insurance Services, Inc. is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant provides property and casualty, workers’ compensation, employee benefits, surety, and financial products and services to some 20,000 clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. More information is available on the company’s web site at: http://www.alliant.com.

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Lynda Lane

Dr. Michel Léonard
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