Best's Credit Rating Methodology (BCRM)
The rating process used to develop a Best's Credit Rating opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance and business profile or, where appropriate, the specific nature and details of a security. The analysis may include comparisons to peers, industry standards and proprietary benchmarks as well as assessments of operating plans, philosophy, management, risk appetite and the implicit or explicit support of a parent or affiliate. The analysis is completed considering applicable BCRM criteria procedures or models.
A.M. Best's Credit Rating Methodology (BCRM) is divided into two parts: 1) the Introduction which contains a description of the rating process, information requirements, an overview of the credit rating evaluation, assumptions & economic factors, and key quantitative and qualitative rating factors and 2) the Insurance Criteria Procedure Reports which describe the criteria employed. The Introduction and Insurance Criteria Procedure Reports are listed as separate pdf documents below. In addition, the entire BCRM is available as one pdf document. (Select Complete BCRM).
Call for Public Comment
Any BCRM criteria procedure report marked as "Draft" below is in a public comment period. Market participants and other interested parties are invited to provide formal comments regarding draft BCRM criteria procedures wherever posted. In addition, formal comments may be submitted at any time on any other existing (i.e. published in-use) BCRM criteria procedure report listed below.
Formal Comments on draft or in-use BCRM criteria procedures should be emailed to firstname.lastname@example.org. Please indicate in your formal BCRM criteria procedure comment submission if the comments provided should be kept confidential. Any formal BCRM criteria procedure comments received that do not indicate a request for confidential treatment will be published in the results of consultation section of this website. (results of consultation).
Best's Credit Rating Methodology
Global Life & Non-Life Insurance Edition
Last Revised: December 18, 2015