A.M. Best Co. is requesting comments from market participants in the insurance industry and other interested parties on its proposed update to its group rating methodology. The draft document is currently available in the Methodology section of A.M. Best’s homepage. Visit www.ambest.com/ratings/methodology.asp to download a PDF copy. The purpose of this methodology is to illustrate how A.M. Best evaluates members of insurance groups and to review what levels of rating enhancement or drag is placed upon the ratings of members of insurance groups. One of the main themes is the implicit and explicit support a parent company provides its insurance subsidiaries. These factors, together with any legal constraints on the free-flow of capital between affiliates, will determine an insurance subsidiary’s rating enhancement or drag and ultimate rating assignment.
A.M. Best will consider feedback from any interested parties prior to publishing this methodology. Written comments can be submitted by email to methodology.commentary@ambest.com no later than Feb. 15, 2009.
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