AM Best is a leading provider of ratings, financial data and news with a specialist focus on the worldwide insurance industry. AM Best’s Credit Ratings are recognised as the benchmark for assessing the financial strength of insurance-related organisations and the credit quality of their obligations. Over 3,300 ratings in approximately 75 countries worldwide currently publish an AM Best rating.
AM Best publishes a range of criteria documents on its approach to the rating of insurance companies and sectors.
Country risk is evaluated and factored into all AM Best ratings. As part of evaluating country risk, AM Best identifies the various factors within a country that may directly or indirectly affect an insurance company. In doing so, AM Best separates the risks into three main categories: economic risk, political risk and financial system risk. Given AM Best’s particular focus on the insurance industry, financial system risk is further divided into two sections: insurance risk and non-insurance financial system risk.
Countries are placed into one of five tiers, ranging from Country Risk Tier 1 (CRT-1), denoting a stable environment with the least amount of risk, to Country Risk Tier 5 (CRT-5) for countries that pose the most risk and, therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
Search for AM Best’s Financial Strength Rating of an insurer/reinsurer