The U.S. property/casualty industry in 2009 experienced a 29 percentage point rise in its overall level of risk-adjusted capitalization, based on A.M. Best's proprietary capital model, Best's Capital Adequacy Ratio (BCAR). The five-year study by A.M. Best found that the industry's 2009 median BCAR score was the highest of any year in the study period--well above the typical BCAR guideline for A.M. Best's highest rating level.
The 2009 rise was due in part to a jump of nearly $42.1 billion in reported policyholders' surplus and an increase in the amount of equity credit given for fixed income securities in the BCAR model due to the improved market conditions. Overall required …
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