18-02-2025
Best's Special Report: AM Best Updates Net Capital Charge Tables Associated With Fannie-Freddie Mortgage Risk Transfers
OLDWICK, N.J.--(BUSINESS WIRE)--Feb 18, 2025--
AM Best has released newly updated tables of net capital charges associated with a representative sample of transactions from Fannie Mae and Freddie Mac's credit risk transfer (CRT) programs — Freddie Mac's Agency Credit Insurance Structure (ACIS) and Fannie Mae's Credit Insurance Risk Transfer (CIRT). These tables also highlight some of the key components of the factor-based method used to calculate net capital charges in the Best's Capital Adequacy Ratio (BCAR) model.
The net capital charge of CRT transactions is based on unexpected losses and premiums associated with the transactions and is represented as a fraction of the original exposures. For this Best's Special Report, 'Updated Net Capital Charge Tables for ACIS/CIRT Reinsurance Transactions,' AM Best has selected a broad sample of the 177 CRT transactions effective through December 2024 to calculate the net capital charges associated with individual layers of the CRT transactions.
AM Best publishes these net capital charge tables semi-annually, using the most current performance data available from the government-sponsored enterprises' websites. Future publications of the net capital charges will be dependent on the continued timely availability of data from Fannie Mae and Freddie Mac, among other factors.
To access the full copy of this special report, please visit .
CONTACT: Wai Tang, Ph.D.
Senior Director,
Insurance-Linked Securities
+1 908 882 2388
[email protected] Mautone
Senior Quantitative Specialist,
Insurance-Linked Securities
+1 908 882 2098
[email protected] Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected] Slavin
Senior Public Relations Specialist
+1 908 882 2318
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2025.
PUB: 02/18/2025 08:35 AM/DISC: 02/18/2025 08:35 AM
