As more of
These tables also highlight some of the key components of the factor-based method used to calculate net capital charges in Best's Capital Adequacy Ratio (BCAR) model. This is the second report on net capital charges for a select group of CRT transactions.
The Best's Special Report, 'Updated Net Capital Charge Tables for ACIS/CIRT Reinsurance Transactions,' notes that net capital charge is represented as B5m (Mortgage-related Net Loss and LAE Reserves Risk) in the net required capital formula that is part of the BCAR. AM Best's determination of a reinsurer's net capital charge is based on unexpected losses and premiums associated with the GSEs' CRT programs, and takes into account each reinsurer's portfolio of ACIS/CIRT transactions.
AM Best publishes the net capital charge tables semi-annually, using the most current performance data available from the GSEs' websites. For this report, AM Best has included approximately half of the ACIS/CIRT transactions effective through
To access the full copy of this special report, please visit
http://www3.ambest.com/bestweek/purchase.asp?record_code=293929 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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