AM Best

Best’s Commentary: AM Best Issues FAQ on IFRS 17 and Credit Rating Considerations


Mahesh Mistry
Senior Director, Head of Analytics
+44 20 7397 0325

Anthony Silverman
Director, Credit Rating Criteria,
Research and Analytics
+44 20 7397 0264
Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322

Edem Kuenyehia
Director, Market Development
and Communications
+44 20 7397 0280


LONDON - JANUARY 04, 2024 08:47 AM (EST)
As more insurance markets transition to the IFRS 17 accounting standard, a new AM Best commentary addresses frequently asked questions about the rating agency’s treatment of IFRS 17 data and clarifies how the accounting regime change is factored into the credit rating process.

Although IFRS 17 became effective for financial periods commencing on or after 1 January 2023, implementation dates can vary by territory. Also, not all jurisdictions are moving to the new standard; notably, the United States is not an IFRS jurisdiction and will not be adopting IFRS 17. Overall, AM Best expects the standard to bring more uniformity and transparency to insurance accounting across territories.

Some issues the commentary addresses include:

  • The impacts of IFRS 17 financial reporting on non-life insurers versus life insurers;

  • When AM Best will begin using IFRS 17 reporting as the basis of its rating analysis;

  • Whether IFRS 17 reporting will result in updates to Best’s Credit Rating Methodology (BCRM) and Best’s Capital Adequacy Ratio (BCAR);

  • How AM Best will compare performance metrics of IFRS 17 and non-IFRS 17 reporting insurers;

  • What changes AM Best expects to key performance indicators (KPIs) under IFRS 17 reporting; and

  • How AM Best’s financial and credit reports will be updated in response to IFRS 17 reporting.

To access the full copy of this commentary, please visit .

AM Best’s credit rating methodology is available at .

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.