A.M. Best Releases BCAR Calculation Tool for P/C Companies.

OLDWICK, N.J. -- A.M. Best Co. has released the BCAR Adjustment System - P/C, US, a desktop application that provides online access to the same base model and data used by A.M. Best analysts to calculate the Best's Capital Adequacy Ratio (BCAR) score for approximately 3,000 single and group U.S. Property/Casualty companies. Users of the BCAR Adjustment System can make adjustments to the BCAR calculation using their own assumptions for any of those 3,000 companies.

BCAR is an integrated review of an insurance company's underwriting, financial and asset leverage. BCAR calculates the net required capital to support the financial risks of the company associated with the exposure of assets and underwriting to adverse economic and market conditions, and compares it to economic capital.

The BCAR Adjustment System is geared toward the needs of a variety of users who have a fairly sophisticated level of familiarity with insurance company operations and capital models. They include U.S. property/casualty insurers, brokers, consultants, actuarial firms, asset management companies and other insurance intermediaries.

Users have immediate access to the latest methodologies and changes to how the BCAR is calculated and have the ability to run BCARs on any company in the industry using their own assumptions. The BCAR Adjustment System will be updated annually with an initial data release in March. The data will be updated automatically and available to customers without downloading any updates. The only updates required would be for application/functionality changes.

While the BCAR Adjustment System provides users with access to the same base starting point as that used by A.M. Best rating analysts, and allows the user to make adjustments to the same variables, the resulting BCAR may not necessarily match the BCAR score published by A.M. Best. This is due to additional adjustments that may be made by the A.M. Best rating analyst based on confidential information collected during the rating review process and the Supplemental Rating Questionnaire (SRQ). Purchase of the BCAR Adjustment System is completely separate from a rated insurer's rating fee and is not required as part of the rating process.

To view an informational video about the BCAR Adjustment System - P/C, US, visit www.ambest.com/sales/bcarvideo.html.

For a full explanation of the BCAR calculation, go to www.ambest.com/ratings/methodology/bcar.pdf.

Additional information can be found at www.ambest.com/sales/BCARSystem/default.asp.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.