|[January 21, 2014]
A.M. Best Requests Comments on Draft Criteria: Equity Credit for Hybrid Securities
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. is requesting comments from market participants in
the insurance industry and other interested parties on the draft
criteria report, "Equity Credit for Hybrid Securities" (updates version
dated Aug. 26, 2012).
Proposed edits to the report include the addition of a new table that
serves as a guideline for assigning equity credit to securities, based
primarily on the two factors of subordination and time to maturity. This
new table replaces the prior exhibit on the debt-equity continuum.
Additionally, the proposed edits include removal of references to
surplus notes, which are now addressed in separate criteria report.
These changes are being made to increase the transparency and market
undersanding of how equity credit is assigned to hybrid securities and
are part of A.M. Best's continual review of its rating methodology.
These changes are not expected to affect ratings. Visit www.ambest.com/ratings/methodology
to download a PDF copy of the draft report.
Written comments should be submitted by email to firstname.lastname@example.org
no later than Feb. 20, 2014. The details of any comments received may be
made public unless specifically requested to be kept confidential.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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