AM Best
| Company type | Corporation |
|---|---|
| Industry | Financial services |
| Founded | 1899 |
| Founder | Alfred M. Best |
| Headquarters | , |
Key people | Arthur Snyder III Chairman & President |
| Services | Rating agency, financial information publications |
| Website | www |
A.M. Best is a U.S.-based 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]
Unlike other NRSROs, A.M. Best focuses solely on the insurance marketplace. A.M. 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]
A.M. Best is also a source of insurance data and market intelligence, covering thousands of companies worldwide through analytical resources and news coverage.
History
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.[4] It also maintains offices in London, Hong Kong, Dubai, Mexico City, Singapore and a news bureau in Washington, D.C.
A.M. Best created and maintains A.M. Best's Financial Suite,[5] 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 through Best's Insurance News & Analysis services, including BestWeek, a weekly insurance industry newsletter with three regional editions (Global, Regulatory and Asia/Pacific),Best's Review, a monthly magazine; and an online daily news digest called BestDay. A.M. Best covers insurance industry events worldwide through its video news channel, A.M. BestTV.
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 and Singapore.[6]
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.[7] 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 rating formulas are proprietary.
See also
References
- ^ "Nationally Recognized Statistical Rating Organizations ("NRSROs")". U.S. Securities and Exchange Commission. Retrieved 25 February 2013.
- ^ "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.
{{cite news}}: Unknown parameter|deadurl=ignored (|url-status=suggested) (help) - ^ "Rating Agencies: New NRSRO A.M. Best May Rate Bond Insurers". The Bond Buyer. 8 March 2005. Retrieved 25 February 2013.
- ^ Chronology of Events in A.M Best's History Archived September 28, 2011, at the Wayback Machine
- ^ O'Donnell, Anthony (31 March 2009). "A.M. Best Releases 2009 Best's Financial Suite—Reinsurance". Insurance & Technology. Retrieved 25 February 2013.
- ^ "A.M. Best Expands Capabilities of its Hong Kong Regional Headquarters". Insurance Journal. 28 February 2003. Retrieved 25 February 2013.
- ^ "Understanding the A.M. Best Insurance Rating System" (PDF). Skyles Insurance Agency. Archived from the original (PDF) on 5 May 2015. Retrieved 25 February 2013.
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