A.M. Best captive ratings are recognized worldwide as the benchmark for assessing insurers' financial strength and their ability to honor obligations to policyholders. The analytical components involve quantitative and qualitative factors grouped into three broad evaluative categories, i.e. balance sheet strength, operating performance, and business profile.

Captive insurers have benefited from an A.M. Best rating in a variety of ways including, an independent validation of the credibility and strength of the captive, enhanced access to reinsurance, greater flexibility with fronting arrangements, better risk management control of an insurance program, facilitated entry into third party business, and satisfaction of regulatory or contractual requirements

What do I need to know to have my Captive Company rated by A.M. Best?

The following methodologies will explain what factors are involved in rating a Captive Insurance Company.

• Single Parent Methodology
• New Company Formation Methodology

Preparing for a rating discussion:

• Rating process
• List of data items required for a typical evaluation
• Sample agenda

For further information, kindly contact Ratings Development, (908) 439-2200 ext. 5515, or email sheila.penn-mattos@ambest.com.

Recent reports on segments within the alternative risk transfer market:

• Domestic Captives
• Self Insurance Pools

Related A.M. Best Sites: