Best’s Commentary: AM Best Issues FAQ on Its National Scale Ratings

A new Best’s Commentary addresses frequently asked questions about Best’s National Scale Ratings (NSR) and how they compare with global Best’s Credit Ratings.

An NSR is a relative measure of the financial strength of insurers and reinsurers that are domiciled in the same country. The NSR focuses on local insurance market characteristics and allows for a more appropriate comparison among domestic market participants, which over time should allow for greater differentiation among them. AM Best currently assigns NSRs in Egypt, India, Indonesia, Mexico, the Philippines and Vietnam.

Some of the issues the commentary also addresses include:

• When an NSR can be assigned;
• How NSRs are mapped from Best’s Issuer Credit Ratings; and
• Whether country risk can influence an NSR.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=336514.

This criteria procedure, “Best’s National Scale Ratings,” is available at http://www.ambest.com/ratings/methodology.asp.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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