This report does not constitute a rating action. Reinsurers and insurers typically use risk transfer solutions to manage and protect their earnings and capital positions. Generally provided by reinsurers, these transactions can be supported by capital markets and come in the form of traditional reinsurance, structured solutions, and asset protection strategies. Risk transfer solutions are an alternative capital source, beyond traditional equity or hybrid issuances. They can reduce an insurer's capital needs because asset or liability risk is transferred to a third party. This credit FAQ discusses how S&P Global Ratings approaches risk transfers in insurance ratings. Our assessments of insurers' creditworthiness consider the benefits and risks of risk transfers. An insurer's risk transfer strategy can influence its profitability, which
