Best’s Capital Adequacy Relativity (BCAR)

AM Best measurement of a company’s relative capital strength compared to its industry peers. Calculated by dividing the capital adequacy ratio by the capital adequacy ratio of the median of the industry peer composite using Best’s proprietary capital mode. Capital adequacy ratios are calculated as the net required capital necessary to support components of underwriting, asset, and credit risks in relation to economic surplus The BCAR is an important component when determining the companies overall rating.