NU Online News Service, Oct. 9, 11 a.m. – Standard & Poor’s will adjust its ratings criteria for insurance companies that have materially reduced their credit risk as part of the demutualization process to reflect such insurers’ lower capital needs, says Mark Puccia, a managing director in S&P’s financial services ratings group.

As more firms demutualize, shareholder pressures place increased focus on earnings performance, S&P notes. This inevitably forces financial management at these companies to reevaluate the amount of capital deployed, especially in light of a historically low return on capital.