Rating Methodologies

AM Best's methodologies for rating insurance companies and insurance-linked securities and structures are powered by strong analytical expertise, research, data, and insight. They help the financial industry and consumers understand how AM Best forms opinions of financial strength, creditworthiness, and the ability to meet policyholder or security holder obligations worldwide.

Best's Credit Rating Methodology (BCRM) is a comprehensive overview of the credit rating process, which consists of quantitative and qualitative evaluations of balance sheet strength, operating performance, business profile, and enterprise risk management.

Best's Insurance-Linked Securities & Structures Methodology (BILSM) outlines the process for rating insurance-linked securities and insurance-linked structures (ILS), and offers insight into the information requirements, key rating considerations, risk modeling and surveillance activities that are generally applied by AM Best.

Call for Public Comment

Any methodologies marked as "Draft" below are currently in a public comment period. Market participants and other interested parties are invited to provide formal comments regarding these drafts. Formal comments may be submitted at any time on the existing (i.e. published in-use) methodologies, and should be e-mailed to methodology.commentary@ambest.com.

Please indicate in the comment submission if the comments provided should be kept anonymous. All comments received through the methodology mailbox that do not indicate a request for anonymous treatment will be published in the results of consultation section of this website (results of consultation). Comments that do request anonymous treatment may be paraphrased in a summary of comments without reference to the author/sender.