Best’s News & Research Service - November 17, 2017 01:35 PM (EST)
Best’s Special Report Highlights U.S. Property/Casualty Run-offs and Shell Companies
- November 17, 2017 01:35 PM (EST)
Oldwick //BestWire// - A.M. Best has a long history of tracking insurance industry participants through each company’s life cycle, which at times can end under regulatory action or an insolvent run-off. In a new Best’s Special Report, titled, “U.S. Property/Casualty Run-offs and Shell Companies,” A.M. Best has summarized U.S. property/casualty (P/C) run-offs and shell companies, which it identified as of June 30, 2017.
For this report, A.M. Best considered a company to be in run-off status if management has expressed that its business is in run-off, even if there are continuing premiums related to existing obligations. In certain cases, if expressed intentions were unclear, A.M. Best considered the overall facts and circumstances in making the designation. A.M. Best identified shell companies as being capitalized and licensed entities without current writings and without any gross insurance or reinsurance liabilities. They may not have begun underwriting operations, or they may have written business previously but have discharged all insurance and reinsurance obligations.
A.M. Best expects the number of U.S. P/C run-offs to remain dynamic and intends to publish updated details on U.S. P/C run-offs annually.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=267988 .
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