A.M. Best Enhances Best’s Capital Adequacy Ratio Model –P/C, US Product to Integrate Updated Criteria for Best’s Capital Adequacy Ratio (BCAR)

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has released changes to its Best’s Capital Adequacy Ratio Model – P/C, US product, which allows subscribers to calculate their Best’s Capital Adequacy Ratio (BCAR) scores for property/casualty insurers that file U.S. statutory statements. The enhanced product applies the BCAR criteria released as part of the Best’s Credit Rating Methodology update that became effective on Oct. 13, 2017.

Best’s Capital Adequacy Ratio Model – P/C, US gives customers access to the same analytical model A.M. Best uses to calculate BCAR scores for U.S. property/casualty rating units. With the enhanced product, subscribers can make assumptions, adjustments and projections for eight main surplus (APHS) categories and seven main net required capital categories, to determine whether an insurer’s capitalization is appropriate for its risk profile. The product includes 2016 annual data for the updated BCAR model and five years of annual data for the legacy model. BCAR scores can now be calculated at different confidence levels or values at risk: 95.0%, 99.0%, 99.5%, 99.6% and 99.8%.

For more information about Best’s Capital Adequacy Ratio Model – P/C, US, visit http://www.ambest.com/sales/bcarsystem.

The Best’s Capital Adequacy Ratio Model – Universal product, primarily used for non –U.S. insurers, has also been enhanced to integrate the updated Best’s Credit Rating Methodology and criteria. For more information, visit http://www.ambest.com/sales/bcaru.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.