Country Risk Tier

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AMB C

R

R

October 26, 2012

Our Insight, Your Advantage.

United States
Country Risk Tier
CRT-1
TheCountryRiskTier(CRT)reflectsA.M.Best’sassessmentof threecategoriesofrisk:Economic,PoliticalandFinancialSystem Risk. • TheUnitedStatesisaCRT-1countrywithverylowlevelsof economic,politicalandfinancialsystemrisk.TheUnitedStates experienceditsworstfinancialcrisissincetheGreatDepression fromDecember2007toJune2009. TheU.S.grossdomesticproduct(GDP)contractedbyover 3%in2009andtheunemploymentratehitdoubledigits.While strongpolicyactionhasbeentaken,bothmonetaryandfiscal, therecoveryhasbeenfragileandmodestwithgrowthrates between1%and2%. Very High

Economic Risk
Moderate Low High

Very Low

Political Risk
Moderate Low High

Economicperformanceintheregionoverthecourseof2008 and2009echoesthatoftheUnitedStates,duetodecreased tourismrevenues,slumpingfinancialservicessectors,andsharp reductioninoverseasremittances.Theregiongrewmodestlyin 2010andisexperiencingaweakrecoveryinto2013.

Very Low

Very High

Financial System Risk
Moderate Low High

Very Low

Very High

For information on companies followed Market Outlooks

CRT 1
Copyright © 2012 by A.M. Best Company, Inc.

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All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.

AMB Country Risk Report

United States

Regional Summary: North America
TheNorthAmericaregionisdominated bytheUnitedStatesofAmerica,which accountsforUSD$15trillionofthetotal USD$18trillionineconomicactivity. •TheUnitedStatesexperienceditsworst recessioninthepostWorldWarIIera fromDecember2007toJune2009inthe wakeofthefinancialcrisisasthehousingbubbleburst.Whiletherecessionhas officiallyended,sluggishgrowthandstubbornlyhighunemploymentcontinueto haveadampeningeffectontheregion’s economicactivity. Vital Statistics 2011 Nominal GDP Population GDP Per Capita Real GDP Growth Inflation Rate Premiums Written (Life) Premiums Written (Non-Life) Premiums Growth (10-11) USD bn mil USD % % USD mil USD mil % Country Risk Tier CRT-1 CRT-1 CRT-1 CRT-1 CRT-3 CRT-1 15227.1 312.0 48,387 1.7 3.1 553,553 480,653 6.6

Regional Comparison United States France Canada Germany Mexico United Kingdom Source: IMF, Axco, Swiss Re and A.M. Best

Economic Risk: Very Low
TheU.S.economyisthelargestand mostadvancedintheworld,withGDPof morethanUSD15trillion.In2007-2009theU.S.economyexperiencedaseverecontraction.Amodest reboundin2010of2.4%GDPgrowth stalledinearly2011,duetoeffectsfrom theearthquakeinJapan,severeweather, sluggishglobalgrowthandpolitical infightingleadingtoinvestorandconsumeruncertainty.Growthisexpectedto beslowandunevenmovingforward. •InAugust2011,theU.S.sovereigncredit ratingwasdowngradedforthefirsttime initshistory,amidconcernsoverrising federaldebtanddiscordamongelected leaders.Despitethedowngrade,investors maintainedtheirfavorableviewofU.S. creditqualityandfledtoU.S.bonds. •UncertaintiesremainregardingEurozonesovereigndebtcrisis,thefiscaldeficit,consumerconfidence,highunemploymentandthesoftglobaleconomy.

5.0
Real GDP CPI Inflation

4.0

3.0

2.0

1.0 % 0.0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

-1.0

-2.0

-3.0

-4.0

Source: IMF World Economic Outlook and A.M. Best

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AMB Country Risk Report

United States

Political Risk Summary
Score 1 (best) to 5 (worst)
United States World Average
International Transactions Policy

Political...
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