Best's Outlook

A.M. Best assigns an Outlook to companies that it rates on an interactive basis and to certain markets or business segments in which those companies operate.

Company Outlook

When assigned to a company, the Outlook indicates the potential future direction of the company's rating over an intermediate period, generally defined as the next 12 to 36 months.

An Outlook can be positive, negative or stable.

• A positive outlook indicates that a company is experiencing favorable financial and market trends, relative to its current rating level. If these trends continue, the company has a good possibility of having its rating upgraded.
• A negative outlook indicates that a company is experiencing unfavorable financial and market trends, relative to its current rating level. If these trends continue, the company has a good possibility of having its rating downgraded.
• A stable outlook indicates that a company is experiencing stable financial and market trends, and that there is a low likelihood the company's rating will change over an intermediate period.

Positive or negative outlooks do not necessarily lead to a change in a company's rating. Similarly, a stable outlook does not preclude a rating upgrade or downgrade.

Potential near-term rating changes (typically within six months) due to a recent event are signaled through the use of an Under Review ("u") modifier. This modifier is assigned once A.M. Best initiates a review to determine the impact of the event on the company's rating.

An Under Review status can have positive, negative or developing implications.

• A positive implication indicates that there is a reasonable likelihood the company's rating will be raised as a result of A.M. Best's analysis of the recent event.
• A negative implication indicates that there is a reasonable likelihood the company's rating will be lowered as a result of A.M. Best's analysis of the recent event.
• A developing implication indicates that there is uncertainty as to the final rating outcome, but there is a reasonable likelihood the company's rating will change as a result of A.M. Best's analysis of the recent event.

Company Outlook and Under Review information can be found within Best's Credit Ratings, which are published in AMB Credit Reports - Insurance Professional and Business Professional, Press Releases and in other A.M. Best financial and analytical products. You can also search for rated companies on Best's Rating & Analysis Center.

Market Segment Outlook

An Outlook for a specific market segment within a geographic region indicates the potential future direction of the aggregate company ratings within that market segment over the next six to 18 months. Outlooks typically are reviewed annually; however, they can be revisited at any time during the year, depending on financial and market conditions.

A market segment outlook reflects a variety of factors, and A.M. Best's assessment of how these factors will affect company ratings within a particular market segment over the next six to 18 months. The key items considered include, but are not limited to: aggregate financial trends within the segment; current and forecasted economic conditions; the current regulatory environment and any pending changes; emerging product developments; and competitive issues.

In addition to being displayed below, market segment outlooks also can appear in Press Releases, Videos and in Review & Preview Special Reports published by A.M Best.

Like a company's Outlook, a market segment outlook can be positive, negative or stable.

• A positive outlook indicates that A.M. Best expects to take more positive rating actions (i.e., rating upgrades and/or outlook revisions) than negative rating actions (i.e., rating downgrades and/or outlook revisions) on companies operating within a market segment. Note: A positive outlook on a specific market segment does not mean that the outlook of all companies operating within the market segment will be positive.
• A negative outlook indicates that A.M. Best expects to take more negative rating actions than positive rating actions on companies operating within a market segment. Note: A negative outlook on a specific market segment does not mean that the outlook of all companies operating within the market segment will be negative.
• A stable outlook indicates that A.M. Best expects that rating actions within the market segment will not show a general trend and will be driven primarily by individual company operations.

Below are the Outlooks for specific market segments and links to additional information.