The Best’s Special Report, titled, “Best’s Impairment Rate and Rating Transition Study — 1977 to 2015,” marks the 13th study conducted by the rating agency. This year’s report presents expanded information, including information on impairment rates associated with more granular Financial Strength Rating (FSR) categories and impairment rates associated with Long-Term Issuer Credit Ratings (Long-Term ICRs) – the rating scale most familiar to users of debt market ratings, as well as more granular transition tables.
Subsets of impairment-related data discussed in the report include:
- Gross impairments, which encompass the broadest definition of impairments and reflect the impairment data
A.M. Besthas used to produce its ratings performance statistics in prior impairment studies;
- Net impairments, which represent gross impairments, except that insurers that became impaired after ratings withdrawals are not counted and cohorts of insurers are not reduced for withdrawn ratings; and
- Liquidations, which represent insurers counted under the net impairment tabulation that were eventually liquidated.
These three definitions of performance statistics provide different views of the credit risk associated with insurance carriers rated by
Drawn from A.M. Best’s general impairment database and historical rating records, this study is a special-purpose report on the ratings performance statistics associated with
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=256284.
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