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{{Short description|American credit rating service}}

{{redirect-distinguish|am best|I Am the Best|Ai Am Best{{!}}''Ai Am Best''|Best (disambiguation){{!}}Best}}
{{redirect|A.M. Best|the persons|Alfred M. Best|and|Best (surname)}}
{{Infobox company
{{Infobox company
| name = A.M. Best Company, Inc.
| name = A.M. Best Company, Inc.
| logo =
| logo =
| type = [[Corporation]]
| type = [[Corporation]]
| foundation = 1899
| foundation = 1899
| founder = Alfred M. Best
| founder = [[Alfred M. Best]]
| location_city = [[Oldwick, New Jersey]]
| location_city = [[Oldwick, New Jersey]]
| location_country = [[United States]]
| location_country = U.S.
| key_people = Arthur Snyder&nbsp;III <br/>Chairman & President
| key_people = Arthur Snyder&nbsp;III<br />Chairman & President
| area_served =
| area_served =
| industry = [[Financial services]]
| industry = [[Financial services]]
| products =
| products =
| services = [[Rating agency]], Financial information publications
| services = [[Rating agency]], financial information publications
| num_employees =
| num_employees =
| owner =
| owner =
| company_slogan =
| company_slogan =
| homepage = {{url |http://www.ambest.com/}}
| homepage = {{URL|www.ambest.com}}
| footnotes =
| footnotes =
}}
}}


'''A.M. Best''' is a U.S.-based [[rating agency]] headquartered in [[Oldwick, New Jersey|Oldwick]], [[New Jersey]], that focuses on the [[insurance]] industry. Both the [[United States Securities and Exchange Commission|U.S. Securities and Exchange Commission]] and the [[National Association of Insurance Commissioners]] have designated the company as a [[Nationally Recognized Statistical Rating Organization]] (NRSRO) in the United States.<ref>{{cite web|title=Nationally Recognized Statistical Rating Organizations ("NRSROs")|url=http://www.sec.gov/divisions/marketreg/ratingagency.htm|publisher=U.S. Securities and Exchange Commission|accessdate=25 February 2013}}</ref><ref>{{cite news|title=A.M. Best Becomes Fifth Agency Added to NAIC'S NRSRO List|url=http://www.naic.org/Releases/2006_docs/AM_Best_NRSRO.htm|accessdate=25 February 2013|newspaper=National Association of Insurance Commissioners Press Release|date=6 March 2006}}</ref>
'''AM Best''' is an American [[credit rating agency]] headquartered in [[Oldwick, New Jersey|Oldwick]], [[New Jersey]], that focuses on the [[insurance]] industry. Both the [[United States Securities and Exchange Commission|U.S. Securities and Exchange Commission]] and the [[National Association of Insurance Commissioners]] have designated the company as a [[Nationally Recognized Statistical Rating Organization]] (NRSRO) in the United States.<ref>{{cite web|title=Nationally Recognized Statistical Rating Organizations ("NRSROs")|url=https://www.sec.gov/divisions/marketreg/ratingagency.htm|publisher=U.S. Securities and Exchange Commission|access-date=25 February 2013}}</ref><ref>{{cite news|title=A.M. Best Becomes Fifth Agency Added to NAIC'S NRSRO List |url=http://www.naic.org/Releases/2006_docs/AM_Best_NRSRO.htm |access-date=25 February 2013 |newspaper=National Association of Insurance Commissioners Press Release |date=6 March 2006 |url-status=dead |archive-url=https://web.archive.org/web/20130531162804/http://www.naic.org/Releases/2006_docs/AM_Best_NRSRO.htm |archive-date=31 May 2013 }}</ref>


==Business==
Unlike other NRSROs like [[Standard & Poor's]], [[Moody's]], and [[Fitch Ratings]], whose ratings focus on the business sector, A.M. Best historically has focused exclusively on the insurance marketplace. A.M. Best issues financial-strength ratings measuring insurance companies' ability to pay claims. It also rates [[financial instrument]]s issued by insurance companies, such as bonds, notes, and [[securitization]] products.<ref>{{cite news|title=Rating Agencies: New NRSRO A.M. Best May Rate Bond Insurers|url=http://www.bondbuyer.com/news/-218413-1.html|accessdate=25 February 2013|newspaper=The Bond Buyer|date=8 March 2005}}</ref>
AM Best issues financial-strength ratings measuring insurance companies' ability to pay claims. It also rates [[financial instrument]]s issued by insurance companies, such as bonds, notes, and [[securitization]] products.<ref>{{cite news|title=Rating Agencies: New NRSRO A.M. Best May Rate Bond Insurers|url=http://www.bondbuyer.com/news/-218413-1.html|access-date=25 February 2013|newspaper=The Bond Buyer|date=8 March 2005}}</ref>

⚫
In addition, A.M. Best also publishes a series of printed and online directories of insurance professionals and publications. The oldest and best known is ''Best's Directories of Recommended Insurance Attorneys & Adjusters''.<ref>{{cite news|title=Business Briefs - Atchely joins Birmingham, Alabama's Luckie & Co.|url=http://www.al.com/business/birminghamnews/hr.ssf?/base/business/1243584951257040.xml|accessdate=25 February 2013|newspaper=The Birmingham News|date=29 May 2009}}</ref> Insurance publications include ''BestWeek'', a weekly newsletter, ''Best's Review'', a monthly magazine, and an online [[wire service]] called ''BestWire''.


⚫
AM Best publishes a series of printed and online resources of insurance professionals and publications. The oldest and best known is ''Best's Recommended Insurance Attorneys & Adjusters''.<ref>{{cite news|title=Business Briefs - Atchely joins Birmingham, Alabama's Luckie & Co.|url=http://www.al.com/business/birminghamnews/hr.ssf?/base/business/1243584951257040.xml|access-date=25 February 2013|newspaper=The Birmingham News|date=29 May 2009|url-status=dead|archive-url=https://web.archive.org/web/20140519065100/http://www.al.com/business/birminghamnews/hr.ssf?%2Fbase%2Fbusiness%2F1243584951257040.xml|archive-date=19 May 2014}}</ref> Insurance publications include ''BestWeek'', a weekly newsletter, ''Best's Review'', a monthly digital & print magazine, and an online [[wire service]] called ''BestWire''.
==History==
==History==
Founded in 1899 by [[Alfred M. Best]] in [[New York City]], the [[privately held]] company moved to [[Morristown, New Jersey|Morristown]], New Jersey, in 1965, and subsequently to [[Oldwick, New Jersey|Oldwick]] in 1974.<ref>[http://www.ambest.com/about/events.html Chronology of Events in A.M Best's History]</ref> It also maintains offices in [[London]] and [[Hong Kong]] and a news bureau in [[Washington, D.C.]]
Founded in 1899 by [[Alfred M. Best]] in [[New York City]], the [[privately held]] company moved to [[Morristown, New Jersey|Morristown]], New Jersey, in 1965, and subsequently to [[Oldwick, New Jersey|Oldwick]] in 1974.<ref>{{cite news|title=Chronology of Events in A.M Best's History|url=http://www.ambest.com/about/ambchronology.pdf|access-date=27 October 2018 }}</ref> It also maintains offices in [[London]], [[Hong Kong]], Dubai, Mexico City, Singapore and a news bureau in [[Washington, D.C.]]


⚫
While the company is best known in the United States, it is becoming increasingly well known in Europe, the Pacific Rim and Latin America. The company's London offices consist of A.M. Best Europe—Rating Services and A.M. Best Europe—Information Services. A.M. Best Asia-Pacific is located in Hong Kong and Singapore.<ref>{{cite news|title=A.M. Best Expands Capabilities of its Hong Kong Regional Headquarters|url=http://www.insurancejournal.com/news/international/2003/02/28/26657.htm|access-date=25 February 2013|newspaper=Insurance Journal|date=28 February 2003}}</ref> A.M. Best America Latina is located in Mexico City. AM Best recently opened a branch of A.M. Best Europe in Amsterdam that provides Ratings Services.<ref>{{cite news|title=A.M. Best Announces ESMA Registration for New Amsterdam Office|url=http://news.ambest.com/presscontent.aspx?refnum=27385&altsrc=48|access-date=26 January 2019|newspaper=Insurance Journal|date=3 December 2018}}</ref>
A.M. Best created and maintains ''A.M. Best's Financial Suite'',<ref>{{cite news|last=O'Donnell|first=Anthony|title=A.M. Best Releases 2009 Best’s Financial Suite—Reinsurance|url=http://www.insurancetech.com/security/am-best-releases-2009-bests-financial-su/216401981|accessdate=25 February 2013|newspaper=Insurance & Technology|date=31 March 2009}}</ref> databases of financial statement information from the annual and quarterly financial statements filed by insurers with the [[National Association of Insurance Commissioners]]. The ''Best's Aggregates & Averages'' series details both current and historical statistics on the U.S. and Canadian property/casualty and life/health industries.

Since first reporting on the insurance impact of the [[San Francisco earthquake]] in 1906, A.M. Best has covered news events that impact the insurance industry. The company publishes several popular insurance news publications including ''BestWeek'', a weekly insurance industry newsletter with three regional editions (U.S./Canada, Europe and Asia/Pacific); ''Best's Review'', a monthly magazine; and an online wire service called ''BestWire''. Additionally, A.M. Best publishes an online daily news digest called ''BestDay'' — a video edition of which is available on the company’s home page.

⚫
While the company is best known in the United States, it is becoming increasingly well known in Europe and the Pacific Rim. The company's London offices consist of A.M. Best Europe—Rating Services and A.M. Best Europe—Information Services. A.M. Best Asia-Pacific is located in Hong Kong.<ref>{{cite news|title=A.M. Best Expands Capabilities of its Hong Kong Regional Headquarters|url=http://www.insurancejournal.com/news/international/2003/02/28/26657.htm|accessdate=25 February 2013|newspaper=Insurance Journal|date=29 February 2003}}</ref>

== Financial Strength and Issuer Credit Ratings ==

Best's Financial Strength Ratings (FSR) represent the company's assessment of an insurer's ability to meet its obligations to policyholders.<ref>{{cite web|title=Understanding the A.M. Best Insurance Rating System|url=http://www.skylesinsurance.com/files/Understanding_the_AM_Best_Insurance_Rating_System.pdf|publisher=Skyles Insurance Agency|accessdate=25 February 2013}}</ref> The rating process involves quantitative and qualitative reviews of a company's [[balance sheet]], operating performance and business profile, including comparisons to peers and industry standards and assessments of an insurer's operating plans, philosophy and management. The ratings formulas are proprietary.

The ratings scale includes six "Secure" ratings:

*'''A++, A+''' (Superior)
*'''A, A-''' (Excellent)
*'''B++, B+''' (Good)

The scale also includes ten ratings for companies deemed "Vulnerable":

*'''B, B-''' (Fair)
*'''C++, C+''' (Marginal)
*'''C, C-''' (Weak)
*'''D''' (Poor)
*'''E''' (Under Regulatory Supervision)
*'''F''' (In Liquidation)
*'''S''' (Rating Suspended)

There are many companies that A.M. Best follows but does not issue a Best's Credit Rating on. These companies are designated as Not Rated (NR)'''.'''

===Long-Term Credit Ratings===
Long-Term Credit Ratings assess the ability of an insurance company, holding company or other legal entity to meet its senior obligations. Ratings from "aa" to "ccc" sometimes are enhanced with a "+" (plus) or "–" (minus) to indicate whether the issuer is near the top or bottom of a category, and may be designated as Under Review ("u") when recent positive, negative or developing events dictate the rating may be subject to change in the near term.

====Insurance Company Issuer Credit Ratings====

=====Investment grade=====
*'''aaa''' (Exceptional)
*'''aa''' (Very Strong)
*'''a''' (Strong)
*'''bbb''' (Adequate)

=====Non-investment grade=====
*'''bb''' (Fair)
*'''b''' (Marginal)
*'''ccc''', '''cc''' (Weak)
*'''c''' (Poor)
*'''d''' (In Default)

====Non-Insurance Company Issuer Credit Ratings====

=====Investment grade=====
*'''aaa''' (Exceptional)
*'''aa''' (Very Strong)
*'''a''' (Strong)
*'''bbb''' (Adequate)

=====Non-investment grade=====
*'''bb''' (Speculative)
*'''b''' (Very Speculative)
*'''ccc''', '''cc''', '''c''' (Extremely Speculative)
*'''d''' (In Default)

===Short-Term Issuer Credit Ratings===
Short-Term Issuer Credit Ratings assess the ability of a rated entity to meet senior financial commitments on obligations maturing in generally less than one year.

====Investment grade====
*'''AMB-1+''' (Strongest)
*'''AMB-1''' (Outstanding)
*'''AMB-2''' (Satisfactory)
*'''AMB-3''' (Adequate)

====Non-investment grade====

*'''AMB-4''' (Speculative)
*'''d''' (In Default)


==See also==
==See also==
* [[Bloomberg L.P.]]
* [[Morningstar, Inc.]]
* [[Nationally Recognized Statistical Rating Organization]]
* [[Nationally Recognized Statistical Rating Organization]]
* [[Reuters]]


==References==
==References==
{{reflist}}
{{Reflist}}


== External links ==
== External links ==
*[http://www.ambest.com/ A.M. Best Official website]
* {{Official website|www.ambest.com}}
*[http://www.ambest.com/ratings/guide.asp Guide to Best's Financial Strength Ratings]
* [https://www.ambest.com/ratings/guide.pdf Guide to Best's Financial Strength Ratings]


{{NRSRO}}
{{NRSRO}}
{{Authority control}}

[[Category:Companies based in Hunterdon County, New Jersey]]
[[Category:Credit rating agencies]]
[[Category:Credit rating agencies]]
[[Category:Financial services companies based in New Jersey]]
[[Category:Financial services companies based in New Jersey]]
[[Category:Companies based in Hunterdon County, New Jersey]]
[[Category:Insurance industry organizations]]
[[Category:Tewksbury Township, New Jersey]]
[[Category:Financial services companies established in 1899]]

Latest revision as of 18:44, 23 December 2024

"am best" redirects here. Not to be confused with I Am the Best, Ai Am Best, or Best.
"A.M. Best" redirects here. For the persons, see Alfred M. Best and Best (surname).
A.M. Best Company, Inc.
Company typeCorporation
IndustryFinancial services
Founded1899
FounderAlfred M. Best
Headquarters
Oldwick, New Jersey
,
U.S.
Key people
Arthur Snyder III
Chairman & President
ServicesRating agency, financial information publications
Websitewww.ambest.com

AM Best is an American credit rating agency headquartered in Oldwick, New Jersey, that focuses on the insurance industry. Both the U.S. Securities and Exchange Commission and the National Association of Insurance Commissioners have designated the company as a Nationally Recognized Statistical Rating Organization (NRSRO) in the United States.[1][2]

Business

[edit]

AM Best issues financial-strength ratings measuring insurance companies' ability to pay claims. It also rates financial instruments issued by insurance companies, such as bonds, notes, and securitization products.[3]

AM Best publishes a series of printed and online resources of insurance professionals and publications. The oldest and best known is Best's Recommended Insurance Attorneys & Adjusters.[4] Insurance publications include BestWeek, a weekly newsletter, Best's Review, a monthly digital & print magazine, and an online wire service called BestWire.

History

[edit]

Founded in 1899 by Alfred M. Best in New York City, the privately held company moved to Morristown, New Jersey, in 1965, and subsequently to Oldwick in 1974.[5] It also maintains offices in London, Hong Kong, Dubai, Mexico City, Singapore and a news bureau in Washington, D.C.

While the company is best known in the United States, it is becoming increasingly well known in Europe, the Pacific Rim and Latin America. The company's London offices consist of A.M. Best Europe—Rating Services and A.M. Best Europe—Information Services. A.M. Best Asia-Pacific is located in Hong Kong and Singapore.[6] A.M. Best America Latina is located in Mexico City. AM Best recently opened a branch of A.M. Best Europe in Amsterdam that provides Ratings Services.[7]

See also

[edit]

References

[edit]
  1. ^ "Nationally Recognized Statistical Rating Organizations ("NRSROs")". U.S. Securities and Exchange Commission. Retrieved 25 February 2013.
  2. ^ "A.M. Best Becomes Fifth Agency Added to NAIC'S NRSRO List". National Association of Insurance Commissioners Press Release. 6 March 2006. Archived from the original on 31 May 2013. Retrieved 25 February 2013.
  3. ^ "Rating Agencies: New NRSRO A.M. Best May Rate Bond Insurers". The Bond Buyer. 8 March 2005. Retrieved 25 February 2013.
  4. ^ "Business Briefs - Atchely joins Birmingham, Alabama's Luckie & Co". The Birmingham News. 29 May 2009. Archived from the original on 19 May 2014. Retrieved 25 February 2013.
  5. ^ "Chronology of Events in A.M Best's History" (PDF). Retrieved 27 October 2018.
  6. ^ "A.M. Best Expands Capabilities of its Hong Kong Regional Headquarters". Insurance Journal. 28 February 2003. Retrieved 25 February 2013.
  7. ^ "A.M. Best Announces ESMA Registration for New Amsterdam Office". Insurance Journal. 3 December 2018. Retrieved 26 January 2019.
[edit]
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