A.M. Best Releases Additional Best’s Credit Rating Methodology Draft Criteria Procedures

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best continues to refine its proposed Best’s Credit Rating Methodology (BCRM) to further increase transparency and consistency. As part of this process, the following draft BCRM-related criteria procedures have been released for comment:

• Available Capital and Holding Company Analysis
• Catastrophe Analysis in A.M. Best’s Ratings
• Evaluating U.S. Surplus Notes
• Rating Funding Agreement Backed Securities Programs
• Rating Monoline Financial Guarantors in the Public Finance Sector
• The Treatment of Terrorism Risk in the Rating Evaluation

Some of these draft criteria procedures are amalgamations of current, in-use criteria procedures. Those that relate to the rating of specialty insurers emphasize what is unique or different between the analysis of the specialty insurer and the analytical process as outlined in the draft BCRM.

These draft criteria procedures are available in the methodology section of A.M. Best’s website. A.M. Best is requesting comment on these draft criteria procedures from insurance industry participants and other interested parties. Written comments should be submitted by e-mail to [email protected] no later than July 31, 2017. When submitting comments to the methodology in-box, commenters have the option of requesting anonymity. All comments received through the methodology in-box that do not request anonymous treatment will generally be published in their entirety, with attribution to the author/sender, upon implementation of the criteria procedure.

A.M. Best expects to release a draft of Rating Title Insurance Companies subsequent to this draft criteria procedure release.

To view a video discussion on this subject with Stephen A. Irwin, senior director, Credit Rating Criteria – Research and Analytics, please visit http://www.ambest.com/v.asp?v=bcrm617.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Stephen A. Irwin

Senior Director

+1 908 439 2200, ext. 5454

[email protected]

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Carlos Wong-Fupuy

Senior Director

+44 20 7397 0287

[email protected]

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

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or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

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Source: A.M. Best