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And, if you were around in the 80s and early 90s, you would remember that about as many A, A+ companies folded as lower rated companies when you consider the number of companies in each category. Executive Life and Mutual Benefit, a staid old 150 year old mutual company, one of the largest in the US are two that come quickly to mind.Does it matter? Yes it does. Period, end of statement.
Do clients of FE care about it? I don't know.
Are FSRs perfectly accurate - probably not, but they are not that far off.
According to AM Best's Special Report: Best's Impairment done from 1977-2015 the cumulative gross impairment for an A+ rated firm over 15 year is 4.69% vs 35.15% for a B- firm. Perhaps I am reading the chart wrong [Exb 3, Page 5], but it does clearly show a correlation between rating and impairment.
[QUOTE="rousemark, post: 1377078, member: 22336"about as many A, A+ companies folded as lower rated companies when you consider the number of companies in each category.