Best's Credit Rating Methodology (BCRM)

Best's Credit Rating Methodology (BCRM) provides a comprehensive explanation of AM Best's rating process. Best's Credit Ratings (BCR) include Best's Financial Strength Ratings (FSR), Issuer Credit Ratings (ICR), and Issue Credit Ratings (IR).

A "building block" approach is used to develop an ICR. Included in this approach are quantitative and qualitative evaluations of balance sheet strength, operating performance, business profile and enterprise risk management. Applicable BCRM criteria procedures or models are considered as part of the analysis.

I. Best's Credit Rating Methodology (BCRM) January 18, 2024

II. Insurance Criteria Procedures

A. Capital Models & Related Criteria Procedures

Understanding BCAR for US Property/Casualty Insurers May 25, 2023

Understanding BCAR for Canadian Property/Casualty Insurers Mar. 07, 2024

Understanding BCAR for US and Canadian Life/Health Insurers Mar. 07, 2024

Understanding Global BCAR Mar. 07, 2024

Available Capital and Insurance Holding Company Analysis Jan. 18, 2024

Catastrophe Analysis in AM Best Ratings Feb. 08, 2024

Evaluating US Surplus Notes Jun. 15, 2023

The Treatment of Terrorism Risk in the Rating Evaluation May 25, 2023

B. Specialty Criteria Procedures

Alternative Risk Transfer (ART) Feb. 08, 2024

Best’s National Scale Ratings Jun. 15, 2023

AM Best's Stress Liquidity Ratio for US Life Insurers May 25, 2023

Analyzing Perpetual Insurers Apr. 11, 2024

Evaluating Country Risk May 04, 2023

Evaluating Mortgage Insurance Mar. 14, 2024

Measuring Transfer and Convertibility Risk Jul. 06, 2023

Rating Funding Agreement-Backed Securities Programs Mar. 08, 2024

Rating Lloyd's Operations Mar. 21, 2024

Rating Monoline Financial Guarantors in the Public Finance Sector Aug. 08, 2023

Rating New Company Formations Sep. 07, 2023

Rating Reinsurance Pools Feb. 22, 2024

Rating Run-Off Insurers and Specialists Sep. 07, 2023

Rating Surety Companies Apr. 07, 2021

Rating Takaful (Shari'a Compliant) Companies May 18, 2023

Rating Title Insurance Companies Aug. 31, 2023

Scoring and Assessing Innovation Feb. 27, 2023

For the specific version of the methodology or criteria procedures associated with a published Best's Credit Rating, please see the Rating Disclosure Form associated with that rating.