AM Best


A.M. Best Requests Comments on New Draft Criteria: Rating Reinsurance/Insurance Transformer Vehicles


CONTACTS:

Asha Attoh-Okine
Managing Senior Financial Analyst,
Insurance Linked-Securities
(908) 439-2200, ext. 5716
asha.attoh-okine@ambest.com

Elmo Chin
Assistant Vice President,
Insurance-Linked Securities
(908) 439-2200, ext. 5227
elmo.chin@ambest.com


Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 01, 2014 02:56 PM (EDT)
A.M. Best is requesting comments from market participants and other interested parties on the new draft criteria report, "Rating Reinsurance/Insurance Transformer Vehicles."

The criteria report describes A.M. Best's rating approach and highlights rating considerations unique to the evaluation of transformer vehicles and the process by which the transformer vehicles act as an intermediary to transfer insurance risks to various counterparties (i.e., reinsurance and non-insurance entities).

This new criteria generally applies to the rating of various types of insurers/reinsurers that are licensed or designated as special purpose insurers/vehicles in various regulatory jurisdictions that primarily assume and cede insurance exposures funded by various capital-market instruments.

Because insurance transformer vehicles are corporate legal entities that have characteristics and features similar to insurance companies, Best's Credit Rating Methodology (BCRM) remains the governing document that provides a comprehensive explanation of A.M. Best's general rating process including the complete set of rating criteria employed.

Visit www.ambest.com/ratings/methodology to download a copy of the draft report.

This new criteria report is not expected to affect existing ratings. Written comments should be submitted by email to rating.methodology@ambest.com no later than Sept. 1, 2014. The details of any comments received may be made public unless specifically requested to be kept confidential.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.