AM Best changing alternative risk transfer rating criteria

AM Best is considering revising its criteria for alternative risk transfer and is seeking comments from market participants and other interested parties. 

The ratings agency said a draft update to its criteria procedure, "Alternative Risk Transfer (ART)" will be available on the methodology section of its website until February 20, 2025.

AM Best does not expect the revisions to "Alternative Risk Transfer (ART)" to impact any published ratings. Proposed changes include the treatment of cell companies and of letters of credit. 

This draft criteria is available at  https://web.ambest.com/ratings-services/rating-methodologies.

When submitting comments to the methodology in-box, commenters can select one of the following three options: Allow my comments to be made public and include my contact information; allow my comments to be made public but keep my contact information anonymous; or do not publish my comments (i.e., confidential). Written comments should be submitted no later than February 20, 2025, by e-mail to one of the following email addresses based on your selection:

To allow your comment to be made public, including your contact information, please email Methodology.Public@ambest.com.

To allow your comment to be made public, but keep your contact information anonymous, please email Methodology.Anonymous@ambest.com.

To not publish your contact information or comments and keep all information confidential, please email Methodology.Private@ambest.com.

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