...Fitch Com prehensive Leverage Measure: The total financing and commitments (TFC) ratio is Fitch Ratings' comprehensive nonris k-based leverage measure for insurance organizations. TFC captures both financ ial debt and operating debt as w ell as various off-balance sheet exposures and debt-like commitments including insurance-linked securities, LOC facilities used for third-party collateral, securities lending liabilities, debt guarantees and derivative obligations such as credit default sw aps (CDS). TFC Triggers Further Analysis: Because TFC includes a mixture of highly disparate exposure types, Fitch does not employ absolute TFC standards at different rating levels. How ever, rating committees may establish max imum TFC tolerances for a given insurer. In addition, a TFC ratio of 0.8x or higher could trigger further analysis on the relative risk of the financing and commitment activities. Perceived high ris k levels w ould have negative rating impacts. Industry TFC Ratio Is "Medium ":...
