AM Best Publishes Impairment Rate Study

A.M. Best Co. has published its second long-term impairment rate study, Best's Impairment Rate and Rating Transition Study -- 1977 to 2004. Financial impairment encompasses a wider array of events than the traditional concept of issuer default. A financially impaired company may still be able to meet its policyholder obligations even though an insurance regulator has become sufficiently concerned about its future viability to intervene in some fashion. Since the first impairment rate study, 19 impairments were added in 2003 and 11 impairments were added in 2004. These impairment coun...