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FOR IMMEDIATE RELEASE
OLDWICK - JULY 01, 2025 02:52 PM (EDT)
AM Best’s latest special report on the long-term impairment rates of U.S.-domiciled insurance companies states that no insurers rated by AM Best became impaired in 2024.
The Best’s Special Report, titled, “Best’s Impairment Rate and Rating Transition Study — 1977 to 2024,” covers 47 one-year periods from Dec. 31, 1977, to Dec. 31, 2024, and the term impairments refers to insurers that became impaired and had a Best’s Financial Strength Rating or Long-Term Issuer Credit Rating at the time of impairment. AM Best designates an insurer as a financially impaired company upon the public placement of the company, via public court order or other international equivalent, into conservation, rehabilitation and/or insolvent liquidation.
The report also notes that the increase in frequency and severity of catastrophe events, especially secondary perils, clearly has pressured more insurers in recent years. In the most recent five-year period through 2024, 20 companies became impaired due to natural catastrophes; 14 were domiciled in Florida or Louisiana.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=355044.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising 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.