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CURRENT GUIDE TO BEST'S RATINGS.

For a complete explanation of Best's Ratings, please refer to the Preface of Best's insurance Reports (r), Best's Key Rating Guide (r) or Best's Key Rating and Statistical Guide. Best's Ratings reflect our independent opinion, but are not a warranty of a company's financial strength and ability to meet its obligations to policyholders.

BEST'S RATINGS AND FINANCIAL PERFORMANCE RATINGS (FPR)

A.M. Best assigns to insurance related organizations one of two types of rating opinions, a Best's Rating (A++ to F) or a Financial Performance Rating (9 to 1). The Best's Rating represents an opinion based on a comprehensive quantitative and qualitative evaluation of a company's balance shee strength and operating performance for companies that do not meet the minimum size and/or operating experience requirements for a Best's Rating.
Secure Best's Ratings
A++ and A+ Superior
A and A- Excellent
B++ and B+ Very Goad
Vulnerable Best's Ratings
B and B- Fair
C++ and C+ Marginal
C and C- Weak
D Poor
E Under Regulatory Supervision
F In Liquidation
S Rating Suspended
Secure FPR Ratings
FPR 9 Very Strong
FPR 8 and 7 Strong
FPR 6 and 5 Good
Vulnerable FPR Ratings
FPR 4 Fair
FPR 3 Marginal
FPR 2 Weak
FPR 1 Poor


RATING MODIFIERS and AFFILIATION CODES

Under Review (u) Rating Modifiers are assigned to Best's Ratings and Financial Performance Ratings to identify companies whose rating opinions are Under Review and may be subject to near-term change. Qualified (q) Rating Modifiers may be assigned to Health Maintenance Organizations (HMOs), Canadian insurers and UK insurers that meet the minimum size and operating experience requirements for a Best's Rating but do not subscribe to our interactive rating process. Best's Qualified Ratings are therefore based primarily on a quantitative analysis of a company's balance sheet strength and operating performance. Affiliation Codes are based on a Group (g), Pooling (p) or Reinsurance (r) affiliation with other insurers.

Rating Modifiers

u - Under Review

q - Qualified

Affiliation Codes

g - Group

p - Pooled

r - Reinsured

NOT RATED CATEGORIES (NR)

Companies not assigned a Bests Rating or FPR are assigned to one of five NR categories which identifies the primary reason a rating opinion was not assigned to the company. For additional information, refer to the Preface.
NR-1 Insufficient Data
NR-2 Insufficient Size and/or Operating Experience
NR-3 Rating Procedure Inapplicable
NR-4 Company Request
NR-5 Not Formally Followed


FINANCIAL SIZE CATEGORIES (FSC) Assigned to all insurance companies and reflects their size based on their capital, surplus and conditional reserve funds in millions of U.S. dollars, using the scale below. For additional information, refer to the Preface.

FSC I: less than 1

FSC II: 1 to 2

FSC III: 2 to 5

FSC IV: 5 to 10

FSC V: 10 to 25

FSC VI: 25 to 50

FSC VII: 50 to 100

FSC VIII: 100 to 250

FSC IX: 250 to 500

FSC X: 500 to 750

FSC XI: 750 to 1,000

FSC XII: 1,000 to 1,250

FSC XIII: 1,250 to 1,500

FSC XIV: 1,500 to 2,000

FSC XV: greater than 2,000
COPYRIGHT 2001 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
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Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2001
Words:515
Previous Article:Best's Rating Changes.
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