A. M. Best

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A.M. Best Company, Inc.
Industry Financial services
Founded 1899
Founder Alfred M. Best
Headquarters Oldwick, New Jersey, United States
Key people
Arthur Snyder III
Chairman & President
Services Rating agency, financial information publications
Website www.ambest.com

A.M. Best is a U.S.-based rating agency headquartered in Oldwick, New Jersey, that focuses on the insurance industry. Both the U.S. Securities and Exchange Commission and the National Association of Insurance Commissioners have designated the company as a Nationally Recognized Statistical Rating Organization (NRSRO) in the United States.[1][2]

Unlike other NRSROs, A.M. Best focuses solely on the insurance marketplace. A.M. Best issues financial-strength ratings measuring insurance companies' ability to pay claims. It also rates financial instruments issued by insurance companies, such as bonds, notes, and securitization products.[3]

In addition, A.M. Best also publishes a series of printed and online directories of insurance professionals and publications. The oldest and best known is Best's Directories of Recommended Insurance Attorneys & Adjusters.[4] Insurance publications include BestWeek, a weekly newsletter, Best's Review, a monthly magazine, and an online wire service called BestWire.


Founded in 1899 by Alfred M. Best in New York City, the privately held company moved to Morristown, New Jersey, in 1965, and subsequently to Oldwick in 1974.[5] It also maintains offices in London, Hong Kong, Dubai, Mexico City, Singapore and a news bureau in Washington, D.C.

A.M. Best created and maintains A.M. Best's Financial Suite,[6] databases of financial statement information from the annual and quarterly financial statements filed by insurers with the National Association of Insurance Commissioners. The Best's Aggregates & Averages series details both current and historical statistics on the U.S. and Canadian property/casualty and life/health industries.

Since first reporting on the insurance impact of the San Francisco earthquake in 1906, A.M. Best has covered news events that impact the insurance industry. The company publishes several popular insurance news publications including BestWeek, a weekly insurance industry newsletter with three regional editions (U.S./Canada, Europe and Asia/Pacific); Best's Review, a monthly magazine; and an online wire service called BestWire. Additionally, A.M. Best publishes an online daily news digest called BestDay — a video edition of which is available on the company’s home page.

While the company is best known in the United States, it is becoming increasingly well known in Europe and the Pacific Rim. The company's London offices consist of A.M. Best Europe—Rating Services and A.M. Best Europe—Information Services. A.M. Best Asia-Pacific is located in Hong Kong and Singapore.[7]

Financial Strength and Issuer Credit Ratings[edit]

Best's Financial Strength Ratings (FSR) represent the company's assessment of an insurer's ability to meet its obligations to policyholders.[8] The rating process involves quantitative and qualitative reviews of a company's balance sheet, operating performance and business profile, including comparisons to peers and industry standards and assessments of an insurer's operating plans, philosophy and management. The ratings formulas are proprietary.

The ratings scale includes six "Secure" ratings:

  • A++, A+ (Superior)
  • A, A− (Excellent)
  • B++, B+ (Good)

The scale also includes ten ratings for companies deemed "Vulnerable":

  • B, B− (Fair)
  • C++, C+ (Marginal)
  • C, C− (Weak)
  • D (Poor)
  • E (Under Regulatory Supervision)
  • F (In Liquidation)
  • S (Rating Suspended)

There are many companies that A.M. Best follows but does not issue a Best's Credit Rating on. These companies are designated as Not Rated (NR).

Long-Term Credit Ratings[edit]

Long-Term Credit Ratings assess the ability of an insurance company, holding company or other legal entity to meet its senior obligations. Ratings from "aa" to "ccc" sometimes are enhanced with a "+" (plus) or "−" (minus) to indicate whether the issuer is near the top or bottom of a category, and may be designated as Under Review ("u") when recent positive, negative or developing events dictate the rating may be subject to change in the near term.

Insurance Company Issuer Credit Ratings[edit]

Investment grade[edit]
  • aaa (Exceptional)
  • aa (Very Strong)
  • a (Strong)
  • bbb (Adequate)
Non-investment grade[edit]
  • bb (Fair)
  • b (Marginal)
  • ccc, cc (Weak)
  • c (Poor)
  • d (In Default)

Non-Insurance Company Issuer Credit Ratings[edit]

Investment grade[edit]
  • aaa (Exceptional)
  • aa (Very Strong)
  • a (Strong)
  • bbb (Adequate)
Non-investment grade[edit]
  • bb (Speculative)
  • b (Very Speculative)
  • ccc, cc, c (Extremely Speculative)
  • d (In Default)

Short-Term Issuer Credit Ratings[edit]

Short-Term Issuer Credit Ratings assess the ability of a rated entity to meet senior financial commitments on obligations maturing in generally less than one year.

Investment grade[edit]

  • AMB-1+ (Strongest)
  • AMB-1 (Outstanding)
  • AMB-2 (Satisfactory)
  • AMB-3 (Adequate)

Non-investment grade[edit]

  • AMB-4 (Speculative)
  • d (In Default)

See also[edit]


  1. ^ "Nationally Recognized Statistical Rating Organizations ("NRSROs")". U.S. Securities and Exchange Commission. Retrieved 25 February 2013. 
  2. ^ "A.M. Best Becomes Fifth Agency Added to NAIC'S NRSRO List". National Association of Insurance Commissioners Press Release. 6 March 2006. Archived from the original on 31 May 2013. Retrieved 25 February 2013. 
  3. ^ "Rating Agencies: New NRSRO A.M. Best May Rate Bond Insurers". The Bond Buyer. 8 March 2005. Retrieved 25 February 2013. 
  4. ^ "Business Briefs - Atchely joins Birmingham, Alabama's Luckie & Co". The Birmingham News. 29 May 2009. Archived from the original on 19 May 2014. Retrieved 25 February 2013. 
  5. ^ Chronology of Events in A.M Best's History Archived September 28, 2011, at the Wayback Machine.
  6. ^ O'Donnell, Anthony (31 March 2009). "A.M. Best Releases 2009 Best's Financial Suite—Reinsurance". Insurance & Technology. Retrieved 25 February 2013. 
  7. ^ "A.M. Best Expands Capabilities of its Hong Kong Regional Headquarters". Insurance Journal. 28 February 2003. Retrieved 25 February 2013. 
  8. ^ "Understanding the A.M. Best Insurance Rating System" (PDF). Skyles Insurance Agency. Archived from the original (PDF) on 5 May 2015. Retrieved 25 February 2013. 

External links[edit]