Best’s Special Report: AM Best Updates Net Capital Charge Tables for ACIS/CIRT Reinsurance Transactions
Best’s Special Report: AM Best Updates Net Capital Charge Tables for ACIS/CIRT Reinsurance Transactions
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 191 CRT transactions effective through June 2026 to highlight some of the key components of the factor-based method used to calculate the net capital charges associated with individual layers of the CRT transactions. The calculations for each transaction are based on AM Best’s factor-based approach and are described in AM Best’s Evaluating Mortgage Insurance criteria procedure.
AM Best publishes these net capital charge tables semi-annually, using the most current performance data available from the government-sponsored enterprises’ websites.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=367746.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Wai Tang
Senior Director, Insurance-Linked Securities
+1 908 882 2388
wai.tang@ambest.com
Jia Jian, CFA, FRM
Director, Insurance-Linked Securities
+1 908 882 1910
jia.jian@ambest.com
David Mautone
Senior Quantitative Specialist, Insurance-Linked Securities
+1 908 882 2098
david.mautone@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20260821950958/en/
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