Predicting Downgrades of A.M. Best's Ratings for Property and Casualty Insurance Companies.
Academy of Accounting and Financial Studies Journal 2007, May, 11, 2
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Publisher Description
ABSTRACT With intense competition among property and casualty insurance companies and tougher standards for ratings by A. M. Best Company, property and casualty insurers are very concerned with maintaining the current ratings since downgrades will affect insurer's ability to retain and attract new business. A. M. Best Company groups insurers receiving a letter grade rating into two distinct groups, "secure" and "vulnerable." Occasionally, A. M. Best Company uses quantitative and qualitative information in a confidential analysis process to downgrade previously assigned ratings from secure to vulnerable.
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