Important Notice: Best's Credit Ratings

A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

The Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance policy and contract obligations. The rating is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

A Best's Debt/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile and, where appropriate, the specific nature and details of a rated debt security.

Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser.

A Best's Bank Deposit Rating is an opinion of the relative ability of a bank to meet its ongoing financial obligations to depositors. It is based on a comprehensive quantitative and qualitative evaluation of a company's capitalization, asset quality, management, earnings, liquidity and sensitivity to market risk. The ratings are not assigned to specific deposit accounts or contracts and do not address the ability of the bank to repay any other financial obligation issued by the bank. A Bank Deposit Rating is not a recommendation to buy, sell or hold financial obligations of a bank, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser.

In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information.

One of the primary sources for this information are a company's annual and quarterly (if available) financial statements presented in accordance with statutory accounting requirements (U.S.) or in accordance with customs or regulatory requirements of the country of domicile (non-U.S.). Meetings between A.M. Best senior personnel and company management also provide additional and valuable in-depth information on the company's current performance and future objectives. For more information regarding specific data used in a typical rating evaluation, read Preparing for a Rating Meeting.

Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty. A rating may be changed, suspended or withdrawn at any time for any reason at the sole discretion of A.M. Best.

A.M. Best does not offer consulting or advisory services. A.M. Best is not an Investment Adviser and does not offer investment advice of any kind, nor does the company or its Rating Analysts offer any form of structuring or financial advice. A.M. Best does not sell securities. A.M. Best is compensated for its interactive rating services. These rating fees can vary from US$ 5,000 to US$ 500,000. In addition, A.M. Best may receive compensation from rated entities for non-rating related services or products offered.

AMB Credit Reports are prepared solely for the confidential use of our subscribers.

Insurance Companies. For most insurers domiciled in the United States, the data contained within these reports are based on each insurance company's sworn annual and quarterly (if available) financial statement as prescribed by the National Association of Insurance Commissioners (NAIC) and as filed with the Insurance Commissioners of the states in which the companies are licensed to do business. These official financial statements are presented in accordance with statutory accounting requirements.

Banks. For banking companies domiciled in the United States, the data contained within these reports are based on each company's annual and quarterly (if available) financial statement as filed with the various banking regulatory agencies of the United States (Federal Reserve, FDIC, OTS, etc.). These official financial statements are generally presented in accordance with U.S. GAAP accounting standards.

Health Care. For U.S.-based hospitals/health-care systems, report data are derived from audited financial statements, including consolidated income statement and balance sheet for the prior three years, operating projections, patient utilization statistics and physician information.

Structured Finance. For these transactions, data and information are gathered from all structural, regulatory, legal and third-party related documentations. Depending on the nature of the transaction, other types of information also are considered, including perils and geographic regions covered, peril modeling firm output, the output of scenarios run by actuarial organizations and related stress tests.

Non-U.S. Data related to companies operating outside the United States are presented in accordance with customs or regulatory requirements of the country of domicile, and there may be significant variations in accounting standards or methods of reporting from one country to another. These differences are imbedded in the accounting principles used, the valuation of assets and liabilities and the treatment of taxes. Financial data usually are received in the currency of the country where the company is domiciled, and A.M. Best's reports generally are presented in that currency and may be presented in U.S. dollars as well. A.M. Best's non-U.S. reports represent a variety of reporting dates, as the fiscal years utilized by companies vary according to traditional reporting periods or regulatory requirements.

Within some of the Canadian insurance company presentations, portions of the data are provided by Beyond 20/20 Inc., Ottawa, Canada.

Supplemental Data. In addition, our reports may include supplemental information obtained by us, such as:

• Data supplied in response to our questionnaires.
• Data contained in state examination reports.
• Audit reports prepared by certified public accountants.
• Loss-reserve reports prepared by loss-reserve specialists.
• Annual reports to stockholders and policyholders.
• Generally Accepted Accounting Principles (GAAP) or International Accounting Standards (IAS) financial statements.
• Reports filed with the Securities and Exchange Commission (SEC) in the United States.

While the information obtained from these sources is believed to be reliable, its accuracy is not guaranteed. A.M. Best does not audit the company's financial records or statements and therefore cannot attest as to the accuracy of the information provided to us. Consequently, no representations or warranties are made or given as to the accuracy or completeness of the information and no responsibility can be accepted for any error, omission or inaccuracy in our reports.

For additional details, see A.M. Best's Terms of Use. For more information regarding A.M. Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the A.M. Best Code of Conduct.

Best's is a registered trademark of the A.M. Best Company, Inc. The rating symbols "A++,'' "A+," "A,'' "A-," "B++" and "B+'' are registered certification marks of the A.M. Best Company, Inc. View our Legal and Licensing information for details on the use of A.M. Best trademarks, logos and service marks.