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GUIDE TO BEST’S ISSUER

CREDIT RATINGS  ICR

A Best’s Issuer Credit Rating (ICR) is an independent opinion of an entity’s ability to meet its ongoing financial obligations

and can be issued on either a long- or short-term basis. A Long-Term ICR is an opinion of an

entity’s ability to meet its ongoing senior financial obligations, while a Short-Term ICR is an opinion of an entity’s ability

to meet its ongoing financial obligations with original maturities generally less than one year. An

ICR is an opinion regarding the relative future credit risk of an entity. Credit risk is the risk that an entity may not meet i

ts contractual financial obligations as they come due. An ICR does not address any other risk. In

addition, an ICR is not a recommendation to buy, sell or hold any securities, contracts or any other financial obligations, nor

does it address the suitability of any particular financial obligation for a specific purpose or

purchaser. An ICR may be displayed with a rating identifier or modifier that denotes a unique aspect of the opinion.

Best’s Long-Term Issuer Credit Rating (Long-Term ICR) Scale

Rating

Categories

Rating

Symbols

Rating

Notches*

Category

Definitions

Exceptionalaaa-Assigned to entities that have, in our opinion, an exceptional ability to meet their ongoing senior financial ob

ligations.

Superior aaaa+ / aa-Assigned to entities that have, in our opinion, a superior ability to meet their ongoing senior financial o

bligations.

Excellentaa+ / a-Assigned to entities that have, in our opinion, an excellent ability to meet their ongoing senior financial ob

ligations.

Goodbbbbbb+ / bbb-Assigned to entities that have, in our opinion, a good ability to meet their ongoing senior financial obligat

ions.

Fairbbbb+ / bb-

Assigned to entities that have, in our opinion, a fair ability to meet their ongoing senior financial obligations. Credit quali

ty is vulnerable to adverse changes in

industry and economic conditions.

Marginalbb+ / b-

Assigned to entities that have, in our opinion, a marginal ability to meet their ongoing senior financial obligations. Credit q

uality is vulnerable to adverse

changes in industry and economic conditions.

Weakcccccc+ / ccc-

Assigned to entities that have, in our opinion, a weak ability to meet their ongoing senior financial obligations. Credit quali

ty is vulnerable to adverse changes

in industry and economic conditions.

Very Weakcc-

Assigned to entities that have, in our opinion, a very weak ability to meet their ongoing senior financial obligations. Credit

quality is very vulnerable to adverse

changes in industry and economic conditions.

Poorc-

Assigned to entities that have, in our opinion, a poor ability to meet their ongoing senior financial obligations. Credit quali

ty is extremely vulnerable to adverse

changes in industry and economic conditions.

* Best’s Long-Term Issuer Credit Rating Categories from “aa” to “ccc” include Rating Notches to reflect a gradation within the

category to indicate whether credit quality is near the top or bottom of a particular

Rating Category. Rating Notches are expressed with a “+” (plus) or “-” (minus).

Best’s Short-Term Issuer Credit Rating (Short-Term ICR) Scale

Rating

Categories

Rating

Symbols

Category

Definitions

StrongestAMB-1+Assigned to entities that have, in our opinion, the strongest ability to repay their short-term financial obliga

tions.

Outstanding AMB-1Assigned to entities that have, in our opinion, an outstanding ability to repay their short-term financial obl

igations.

SatisfactoryAMB-2Assigned to entities that have, in our opinion, a satisfactory ability to repay their short-term financial obl

igations.

AdequateAMB-3

Assigned to entities that have, in our opinion, an adequate ability to repay their short-term financial obligations; however, a

dverse industry or economic conditions likely will

reduce their capacity to meet their financial commitments.

QuestionableAMB-4

Assigned to entities that have, in our opinion, questionable credit quality and are vulnerable to adverse economic or other ext

ernal changes, which could have a marked impact

on their ability to meet their financial commitments.

Long- and Short-Term Issuer Credit Non-Rating Designations

Designation

Symbols

Designation

Definitions

dStatus assigned to entities (excluding insurers) that are in default or when a bankruptcy petition or similar action has been

filed and made public.

e

Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international

equivalent, or in the absence of a court order, clear regulatory action

has been taken to delay or otherwise limit policyholder payments.

fStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the in

ternational equivalent.

s

Status assigned to rated entities to suspend the outstanding ICR when sudden and significant events impact operations and ratin

g implications cannot be evaluated due to a lack of timely or

adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evo

lving regulatory requirements.

nrStatus assigned to entities that are not rated; may include pr

eviously rated entities or entities that have never been rated

by AM Best.

Rating Disclosure: Use and Limitations

A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financi

al obligation’s relative creditworthiness. The opinion represents a comprehensive analysis

consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business profile and

enterprise risk management or, where appropriate, the specific nature and details of a

security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guaran

tee of future credit quality and therefore cannot be described as accurate or inaccurate. A

BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of catego

ries and notches. Entities or obligations assigned the same BCR symbol developed using

the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in categ

ory (or notches within a category), but given there is a prescribed progression of categories

(and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) ca

nnot mirror the precise subtleties of risk that are inherent within similarly rated entities or

obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is

not an indicator or predictor of defined impairment or default probability with respect to any

specific insurer, issuer or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or

advisory service, as such; it is not intended to be utilized as a recommendation to purchase,

hold or terminate any insurance policy, contract, security or any other financial obligation, nor does it address the suitabili

ty of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should

not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must m

ake their own evaluation of each investment decision. A BCR opinion is provided on an

“as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time

for any reason at the sole discretion of AM Best.

For the most current version, visit

www.ambest.com/ratings/index.html

. BCRs are distributed via the AM Best website at

www.ambest.com

. For additional information regarding the development of a BCR and other

rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refer to t

he report titled “

Guide to Best’s Credit Ratings

” available at no charge on the AM Best website.

BCRs are proprietary and may not be reproduced without permission.

Copyright © 2024 by A.M. Best Company, Inc. and/or its aliates.

ALL RIGHTS RESERVED.

Version 121719

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Best’s Credit Rating Actions

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More than 40 U.S. colleges and universities offer programs to prepare

students for careers in insurance and risk management.

Alabama

Troy University

Illinois

Sorrell College of Business

Department of Economics, Finance, Risk

Management and Insurance

University of Alabama

Culverhouse College of Business

Department of Economics, Finance, and

Legal Studies

Risk Mgmt, Insurance & Financial Svcs minor

Arkansas

University of Central Arkansas

College of Business

Department of Economics, Finance, and

Insurance & Risk Management

California

California State University, Fullerton

College of Business and Economics

School of Risk Management and Insurance

Colorado

University of Colorado, Denver

Business School

BSBA in Risk Management & Insurance

Florida

Florida State University

College of Business

Department of Risk Management/Insurance,

Real Estate and Legal Studies

Dr. William T. Hold/The National Alliance

Program in Risk Management & Insurance

University of South Florida

Muma College of Business

Baldwin Risk Partners School of Risk

Management and Insurance

Georgia

Georgia State University

Illinois State University

Indiana

Butler University

J. Mack Robinson College of Business

Maurice R. Greenberg School of Risk Science

University of Georgia

Indiana State University

Terry College of Business

Risk Management & Insurance Program

College of Business

Risk Management & Insurance major

Katie School of Insurance and Risk Management

Ball State University

Miller College of Business

Department of Finance and Insurance

Risk Management and Insurance major

Lacy School of Business

Davey Risk Management and Insurance

Scott College of Business

Insurance and Risk Management Program

Iowa

Drake University

Zimpleman College of Business

The Kelley Center for Insurance Innovation

University of Iowa

Tippie College of Business

Risk Management & Insurance major

The Vaughan Institute

Kentucky

Eastern Kentucky University

College of Business

Risk Management & Insurance major

Louisiana

University of Louisiana, Lafayette

Department of Economics & Finance

Insurance & Risk Management Program

University of Louisiana, Monroe

The College of Business and Social Sciences

Department of Risk Management & Insurance

Michigan

Ferris State University

College of Business

Risk Management and Insurance Program

The University of Olivet

Insurance and Risk Management Program

BEST’S RE

V

IEW

•

JANUARY



College Programs

More than 50 publications report on insurance news from

around the world.

Artemis

Asia Insurance Review

Auto Insurance Report

BenefitsPro

Bermuda:Re+ILS

Business Insurance

Captive Insurance Times

Captive Intelligence

Captive International

Carrier Management

Claims

Claims Journal

Commercial Risk

Commercial Risk Europe

Emerging Risks

Forbes Advisor

FundFire

Global Reinsurance

Global Risk Manager

Health Payer Specialist

Inside P&C

Insider Engage

Insurance & Investment Journal

Insurance Age

Insurance Asset Risk

Insurance Day

Insurance Insider

Insurance Journal

Insurance News Magazine

Insurance Post

Insurance Times

InsuranceAsia News

InsuranceERM

InsuranceNews.com.au

Intelligent Insurer

Journal de l’assurance

Leader’s Edge

Life Annuity Specialist

Middle East Insurance Review

National Underwriter Property Casualty

P&C Specialist

Property Insurance Report

(Re)in Asia

Reinsurance News

Retirement Income Journal

Risk & Insurance

Risk.net

Strategic Risk

The Insurer

ThinkAdvisor

Thompson’s World Insurance News

Trading Risk

TAP INTO THE

OF

The

AM Best Business Trilogy

distills the experience of key players

in the insurance and credit rating industries into a concentrated

narrative. Draw from the collective wisdom of the pioneers who

helped shape today’s global business environment.

A portion of the proceeds from

The AM Best Business Trilogy

will be donated to the AM Best Foundation,

a nonprofit which supports charitable organizations that encourage education and thought leadership in insurance

and risk management.

72

Our Insight, Your Advantage

™

(908) 439-2200

BEST’S REVIEW

•

JANUARY 

Insurance Publishers

23.TRI05F1

74

Insurance Speak

Discussions with insurance industry thought leaders on such topics as

sales and marketing, emerging risks, insurtech, M&A, fraud and more.

PropertyCasualty360

Insurance Tomorrow

Steph McGovern and an expert panel discuss global business trends,

their impacts on the insurance industry and challenges they pose to

insurance brokers.

Allianz UK

InsuranceAUM.com

Discussions with insurance asset management professionals.

Insurance AUM

Insurtech Insider

Discussions with experts in insurtech.

11:FS

The Insurtech Leadership Podcast

Interviews with leaders of insurtechs, carriers and brokers.

Horton International

Leader’s Edge

Covers legal/legislative issues, management trends, tech and more.

The Council of Insurance Agents & Brokers

Life Insurance Academy Podcast

Life insurance sales.

Life Insurance Academy

Making Risk Flow

Digital transition and risk processing.

Cytora

Modern Life Insurance Selling Podcast

Focus on life insurance sales.

SellTermLife.com

NAMIC’s Insurance Uncovered

News and interviews about property/casualty insurance and mutual

insurance companies.

National Association of Mutual Insurance Companies

The Navigating Dental Insurance Podcast

Managing cash flow, recurring revenue, membership plans, PPO fee

negotiations, insurance best practices, and more.

Dentaltown

Podcasts - Insurance Journal

Property/casualty insurance issues and interviews.

Wells Media Group Inc.

Power Producers Podcast

Selling commercial property/casualty insurance.

Killing Commercial

Power Women in Insurance

Insurance issues and interviews with insurance leaders.

Agency Intelligence Podcast Network

Practical Protection Podcast

Discussions of specific insurance coverages and issues.

Advice for Advisers Ltd.

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JANUARY 

Predict & Prevent

Explores new ways to respond to some of the biggest risk challenges by

working to better predict and prevent losses before they occur.

The Institutes

Profiles in Risk

Discussions with insurtech and insurance experts.

Insurance Nerds

The Reinsurance Podcast

Discussions of issues important to cedents, brokers and

reinsurance underwriters.

Supercede Technology Ltd.

(Re)thinking Insurance Podcast

Exploring issues facing P/C, life and composite insurers, as well as tools,

techniques and innovations.

WTW

Ridiculously Amazing Insurance Podcast

Discussions about insurance agencies and agency personnel.

Agency Performance Partners

Risk Management: Brick by Brick

Interviews with risk managers and technologists.

Risk Matters

Discussions of insurance and operational issues.

Scott Insurance

Ryan Hanley Show (Finding Peak)

How insurance professionals reach peak performance in life and business.

Scouting for Growth

Interviews with fintechs, insurtechs, healthtechs and wealthtechs.

Startup Bootcamp

Simply Explaining Insurance

Discussions about insurance policies and topics.

DietzAgency.com

Spot On Insurance

Interviews with regulators, agency principals, captive managers,

industry attorneys and licensing coordinators.

Insurance Licensing Services of America

That Annuity Show

Discussions about independent agents and annuities.

Nassau Financial Group

Tomorrow

Global risk and insurance issues.

Allianz Research

Vertafore Insurance Podcast

Issues important to independent agents and insurtech.

Vertafore

Voice of Insurance

Interviews with insurance leaders.

Mark Geoghegan

Zalma on Insurance

Insurance coverage, insurance claims handling, insurance bad faith and

insurance fraud.

Barry Zalma Inc.

Podcasts

W

A number of organizations are responsible for ensuring best practices in the

industry and advocating for insurers on a local and global scale.

hether it’s lobbying for insurance reform in

California or trying to salvage the industry

in Florida, insurers believe in strength

in numbers.

That’s why they’ve created a long list of trade

associations that have stood up for insurers whenever

they’ve faced resistance, particularly from lawmakers,

or any kind of troubles that could prove costly.

One of the most important missions for trade

groups is to inform their members. A recent

report prepared for the American Property

Casualty Insurance Association, for instance, said

that legislation being pushed in Michigan as a

“Policyholder Bill of Rights” could end up costing

the individuals it is meant to help by causing rates to

rise and companies to flee the state.

Proposed recoveries include actual damages,

damages due to reputational loss, emotional distress,

interest, exemplary damages, punitive damages,

attorney fees and legal costs, the report said.

A coalition of insurance and other business trade

groups called “Don’t Touch MI Rates” followed

up the report by saying the legislation would hit

consumers hard in their wallets, while lining the

pockets of trial attorneys.

“These proposed bills could lead to escalated costs

for consumers and businesses across the state, increase

fraud, and open the litigation floodgates, creating

detrimental consequences for all Michiganders,

particularly small business owners,” said Jared

Burkhart, chief executive officer of the Independent

Insurance Agents and Brokers of Michigan.

Here is a selected list of insurance trade

associations and the countries where they are based:

76

Australia

Australian Risk Policy Institute

Insurance Council of Australia

Risk Management Institute of Australasia

Belgium

Belgian Risk Management Association

Global Federation of Insurance Associations

Federation of European Risk Management

Associations

Insurance Europe

Canada

American Academy of Insurance Medicine

Canadian Board of Marine Underwriters

Canadian Independent Adjusters’ Association

Canadian Institute of Actuaries

Canadian Life & Health Insurance Association

Independent Financial Brokers of Canada

BEST’S REVIEW

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JANUARY 

Canada

(continued)

Insurance Brokers Association of Canada

Insurance Brokers Association of Nova Scotia

Insurance Bureau of Canada

Insurance Institute of Canada

International Institute of Loss Adjusters

Netherlands

International Credit Insurance & Surety Association

Switzerland

The Geneva Association

United Kingdom

Association of British Insurers

Trade Associations