Best's Credit Rating Methodology (BCRM)
Our rating process involves a comprehensive quantitative and qualitative analysis of a company's balance sheet strength, operating performance and business profile. This includes comparisons to peers and industry standards as well as assessments of operating plans, philosophy and management. Where the rating is assigned to a debt security, it also includes a review of the specific nature and details of the security.
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 Reports which describe the criteria employed in determining Best's Financial Strength, Issuer Credit and Debt Ratings within the insurance industry.
The Introduction and Insurance Criteria Reports are listed as separate pdf documents below. In addition, the entire BCRM is available as one pdf document. (Select Complete BCRM). Parts of the BCRM marked "Draft" are in a public comment period when market participants in the insurance industry and other interested parties are invited to email comments to firstname.lastname@example.org (see results of consultation).
Table of Contents
Global Life & Non-Life Insurance Edition
Last Updated: 9/05/2014