Learning Outcome 6 (10 marks)

BWL DAC is an Irish-based insurer. Following a recent review by a rating agency, BWL DAC's credit rating was upgraded. BWL DAC operates in a competitive environment where most products and services are homogeneous.

Question 8 -

a) Identify, with justification, three significant implications of this credit rating change for BWL DAC. (6 marks)

b) From their perspective, explain the potential impact on BWL DAC's main competitors from this change in credit rating. (4 marks)