The National Association of Insurance Commissioners (NAIC) has voted to include Realpoint as an acceptable rating organization, which means that U.S. insurance companies can now rely on its CMBS ratings to calculate their capital strength and required reserves.
Insurance companies had asked the NAIC to recognize Realpoint as an Acceptable Rating Organization because of its stable ratings and its strong history in analyzing CMBS. Realpoint is an investor-centric rating agency, providing its analysis and ratings to investors through subscriptions.
Insurance companies have historically relied on ratings from the big-three rating agencies to quantify the risks of their CMBS and other structured finance investments. Realpoint offers an alternative to the big-three.
Realpoint evaluates every CMBS deal on a monthly basis, eliminating much of the ratings volatility that has plagued ratings from other agencies.
"For years, investors in the insurance industry have come to Realpoint for reliable ratings, comprehensive analysis and complete transparency of the process," said Rob Dobilas, president and chief executive officer of Realpoint. "The NAIC is now acknowledging the statement from its membership that our business model is on point."