AM Best


A.M.BestTV: Senior Rating Analysts Discuss Capital Model Developments


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Lee McDonald
Group Vice President, Publication and News Services
(908) 439-2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - APRIL 17, 2015 11:49 AM (EDT)
This episode of A.M.BestTV looks at highlights of a recent webinar where senior members of A.M. Best's Rating Division provided updates and details on the upgrading of the agency's Best's Capital Adequacy Ratio (BCAR).

Click on http://www.ambest.com/v.asp?v=capmodel415 to view the video program.

Vice President Thomas Mount started the webinar by explaining exactly what BCAR entails. "For the property/casualty (P/C) and life/health (L/H) BCARs, the core ratios are ratios of how much adjusted surplus does a company presently have verses what will it need in the future in terms of required capital," said Mount.

George Hansen, assistant vice president, addressed bond default risks, saying "the bond default risk charges are increasing. There might be categories of bonds where the default factors may decrease; however, on an overall basis, increasing risk charges are emerging for both P/C and L/H."

Senior Vice President Matthew Mosher summarized A.M. Best's usage of BCAR. "BCAR is a tool that A.M. Best uses to develop company ratings. A.M. Best does not anticipate it to be something that will create major changes, since as far as risks are concerned, A.M. Best is presently capturing most of the risks. Nevertheless, this overall is about enhancing our evaluation in some areas."

Click on http://www.ambest.com/webinars/capmodel15 to view the entire webinar program.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

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