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A.M. Best Special Report: Key Measures on Non-Rated Property/Casualty Companies.

OLDWICK, N.J. -- A.M. Best Co.'s financial strength ratings (A++ to F) are assigned to companies based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

The current universe of letter-rated property/casualty insurers accounts for roughly 95% of the total premium written in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In addition to letter-rated companies, A.M. Best also reports on many companies that are not assigned a rating opinion. These non-rated (NR) companies are assigned one of five NR categories and are grouped by the composite that best matches their business profile.

Individual company results vary widely relative to the composite medians. Of the NR companies that fall into the Commercial Auto and Medical Malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional.  composites, operating performance generally is reported at acceptable levels, while overall capitalization appears to fall short relative to underlying risks. In contrast, the NR companies that fall into the Professional Fidelity and Surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act.

surety n.
 Composite generally are well capitalized but have a wide disparity dis·par·i·ty  
n. pl. dis·par·i·ties
1. The condition or fact of being unequal, as in age, rank, or degree; difference: "narrow the economic disparities among regions and industries" 
 in their operating performance. Those NR companies that fall into the Commercial Casualty, Private Passenger Auto or Property composites experience wide disparity in both their operating performance and levels of capital relative to their risks.

The NR companies that fall into the Workers' Compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work.  Composite include several large state funds that represent the largest NR companies based on surplus size and premium volume. The NR companies (both state fund and non-state fund) that fall into the Workers' Compensation Composite report the least dispersion dispersion, in chemistry
dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution.
 of underwriting Underwriting

1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).

2. The process of issuing insurance policies.
 performance and leverage measures relative to NR companies in other composites.

BestWeek subscribers can download a PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format.  copy of all full special reports at no additional cost or a combination of the PDF copies plus all related spreadsheet files of the report data at no additional cost from our Web site at

Nonsubscribers can download a PDF copy of the full special report (20 pages) for $85 or a combination of the PDF copy plus the spreadsheet file of the report data for $220 from our Web site at

Call customer service for more information, (908) 439-2200, ext. 5742.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at
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Publication:Business Wire
Date:Oct 9, 2006
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