Best's Public Data (pd) Rating Modifiers may be assigned to United States health insurers and Health Maintenance Organizations (HMOs), and Canadian, UK and other European insurers that do not subscribe to our interactive rating process. Best's Public Data Ratings reflect both qualitative and quantitative analysis using publicly available data and other public information.
A 'pd' rating is an A.M. Best opinion of the long term financial strength of an insurer or reinsurer. They are expressed using the same rating scale and definitions as A.M. Bests interactive ratings of long-term financial strength but have a 'pd' rating modifier applied to ensure the user is aware of the more limited information basis for the rating. The assignment of Best's Public Data Ratings ('pd' subscript) also incorporates analysis of balance sheet strength, operating performance and business profile. However, the analysis does not generally involve interaction with company management.
In contrast, an interactive A.M. Best rating is produced at the request of the insurer. The rating process includes detailed interviews of senior management and, typically, access to non-public data and other information. Analysis on issues that would typically have limited distribution in the public domain play a significant part in the interactive rating analysis. (E.g. detailed information on management strategy, earnings forecasts, reinsurance protections, reserving methodology, etc.*)
A 'pd' rating, however, is produced at A.M. Best's initiative in those markets where our customers are keen to see our rating coverage extend beyond those companies that are interactively rated. The ratings are based on the publicly available data and other public information on the company, i.e. The information that is typically available to policyholders, brokers and other parties with a vital interest in an insurer's financial strength. The assignment of a 'pd' rating is dependent on A.M. Best's view as to the adequacy of the information available.
For more information on the 'pd' rating process, please view our on-line FAQ. The following press releases also outline the release of 'pd' ratings for various segments of the insurance industry.