Insurance Company Rating Systems
A.M. Best
Grade | |
---|---|
A++/A+ | |
Interpretation | Superior. Very strong ability to meet obligations. |
A/A- | |
Interpretation | Excellent. Strong ability ot meet obligations. |
B++/B+ | |
Interpretation | Good. Good ability to meet obligations. |
B/B- | |
Interpretation | Fair. Adequate ability to meet obligations. |
C++/C+ | |
Interpretation | Marginal. Reasonable ability to meet obligations. |
C/C- | |
Interpretation | Weak. Currently has the ability to meet obligations. |
D | |
Interpretation | Poor. Below minimum standards. |
E | |
Interpretation | Under regulatory supervision. |
F | |
Interpretation | In liquidation. |
S | |
Interpretation | Rating Suspended - usually due to insufficient information. |
Grade | Interpretation |
---|---|
A++/A+ | Superior. Very strong ability to meet obligations. |
A/A- | Excellent. Strong ability ot meet obligations. |
B++/B+ | Good. Good ability to meet obligations. |
B/B- | Fair. Adequate ability to meet obligations. |
C++/C+ | Marginal. Reasonable ability to meet obligations. |
C/C- | Weak. Currently has the ability to meet obligations. |
D | Poor. Below minimum standards. |
E | Under regulatory supervision. |
F | In liquidation. |
S | Rating Suspended - usually due to insufficient information. |
Standard and Poor's
Grade | |
---|---|
AAA | |
Interpretation | Extremely strong financial security. Highest safety. |
AA+/AA/AA- | |
Interpretation | Very strong financial security. Highly safe. |
A+/A/A- | |
Interpretation | Strong financial security. More susceptible to economic change that highly rated companies. |
BBB+/BBB/BBB- | |
Interpretation | Good financial security. More vulnerable to economic change than highly rated companies. |
BB+/BB/BB- | |
Interpretation | Marginal financial security. Ability to meet obligations may not be adequate for long-term policies. |
B+/B/B- | |
Interpretation | Week financial security. An unfavorable business environment will probably reduce its ability to meet obligations. |
CCC+/CCC/CCC- | |
Interpretation | Very weak. Currently able to meet obligations. Highly vulnerable to adverse economic conditions. |
CC | |
Interpretation | Extremely weak. Questionable ability to meet obligations. |
R | |
Interpretation | Regulatory action. Under supervision of insurance regulators. |
NR | |
Interpretation | Not rated. No opinion is expressed about the firm's financial condition. |
Grade | Interpretation |
---|---|
AAA | Extremely strong financial security. Highest safety. |
AA+/AA/AA- | Very strong financial security. Highly safe. |
A+/A/A- | Strong financial security. More susceptible to economic change that highly rated companies. |
BBB+/BBB/BBB- | Good financial security. More vulnerable to economic change than highly rated companies. |
BB+/BB/BB- | Marginal financial security. Ability to meet obligations may not be adequate for long-term policies. |
B+/B/B- | Week financial security. An unfavorable business environment will probably reduce its ability to meet obligations. |
CCC+/CCC/CCC- | Very weak. Currently able to meet obligations. Highly vulnerable to adverse economic conditions. |
CC | Extremely weak. Questionable ability to meet obligations. |
R | Regulatory action. Under supervision of insurance regulators. |
NR | Not rated. No opinion is expressed about the firm's financial condition. |
Standard and Poor's
Grade | |
---|---|
AAA | |
Interpretation | Extremely strong financial security. Highest safety. |
AA+/AA/AA- | |
Interpretation | Very strong financial security. Highly safe. |
A+/A/A- | |
Interpretation | Strong financial security. More susceptible to economic change that highly rated companies. |
BBB+/BBB/BBB- | |
Interpretation | Good financial security. More vulnerable to economic change than highly rated companies. |
BB+/BB/BB- | |
Interpretation | Marginal financial security. Ability to meet obligations may not be adequate for long-term policies. |
B+/B/B- | |
Interpretation | Week financial security. An unfavorable business environment will probably reduce its ability to meet obligations. |
CCC+/CCC/CCC- | |
Interpretation | Very weak. Currently able to meet obligations. Highly vulnerable to adverse economic conditions. |
CC | |
Interpretation | Extremely weak. Questionable ability to meet obligations. |
R | |
Interpretation | Regulatory action. Under supervision of insurance regulators. |
NR | |
Interpretation | Not rated. No opinion is expressed about the firm's financial condition. |
Grade | Interpretation |
---|---|
AAA | Extremely strong financial security. Highest safety. |
AA+/AA/AA- | Very strong financial security. Highly safe. |
A+/A/A- | Strong financial security. More susceptible to economic change that highly rated companies. |
BBB+/BBB/BBB- | Good financial security. More vulnerable to economic change than highly rated companies. |
BB+/BB/BB- | Marginal financial security. Ability to meet obligations may not be adequate for long-term policies. |
B+/B/B- | Week financial security. An unfavorable business environment will probably reduce its ability to meet obligations. |
CCC+/CCC/CCC- | Very weak. Currently able to meet obligations. Highly vulnerable to adverse economic conditions. |
CC | Extremely weak. Questionable ability to meet obligations. |
R | Regulatory action. Under supervision of insurance regulators. |
NR | Not rated. No opinion is expressed about the firm's financial condition. |
Moody's
Grade | |
---|---|
Aaa | |
Interpretation | Exceptional security. Unlikely to be affected by change. |
Aa1/Aa2/Aa3 | |
Interpretation | Excellent security. Lower than Aaa because long-term risks appear somewhat larger. |
A1/A2/A3 | |
Interpretation | Good security. Possibly susceptible to future impairment. |
Baa1/Baa2/Baa3 | |
Interpretation | Adequate security. Certain protective elements may be lacking. |
Ba1/Ba2/Ba3 | |
Interpretation | Questionable security. Ability to meet obligations may be moderate. |
B1/B2/B3 | |
Interpretation | Poor security. Assurance of punctual payment of obligations is small over the long run. |
Caa | |
Interpretation | Very poor security. There may be elements of danger regarding the payment of obligations. |
Ca | |
Interpretation | Extremely poor security. Companies are often in default. |
C | |
Interpretation | Lowest security. Extremely poor prospects of offering financial security. |
Grade | Interpretation |
---|---|
Aaa | Exceptional security. Unlikely to be affected by change. |
Aa1/Aa2/Aa3 | Excellent security. Lower than Aaa because long-term risks appear somewhat larger. |
A1/A2/A3 | Good security. Possibly susceptible to future impairment. |
Baa1/Baa2/Baa3 | Adequate security. Certain protective elements may be lacking. |
Ba1/Ba2/Ba3 | Questionable security. Ability to meet obligations may be moderate. |
B1/B2/B3 | Poor security. Assurance of punctual payment of obligations is small over the long run. |
Caa | Very poor security. There may be elements of danger regarding the payment of obligations. |
Ca | Extremely poor security. Companies are often in default. |
C | Lowest security. Extremely poor prospects of offering financial security. |
Fitch
Grade | |
---|---|
AAA | |
Interpretation | Exceptionally strong. Unlikely to be affected by change. |
AA+/AA/AA- | |
Interpretation | Very strong. Moderate risk factors. Very strong ability to meet obligations. |
A+/A/A- | |
Interpretation | Strong. Moderate risk factors. Strong ability to meet obligations. |
BBB+/BBB/BBB- | |
Interpretation | Good. Risk factors may be somewhat high. Good ability to meet obligations. |
BB+/BB/BB- | |
Interpretation | Moderately weak. Uncertain ability to meeto obligations. |
B+/B/B- | |
Interpretation | Weak. Poor ability to meet obligations. |
CCC+/CCC/CCC-/CC+/C/C- | |
Interpretation | Very weak. Insurers in any of these ratings viewed as having poor ability to meet obligations. |
DDD/DD/D | |
Interpretation | Distressed. Insurers have either failed to meet obligations or are under regulatory supervision/intervention. |
NR | |
Interpretation | Not rated. |
Grade | Interpretation |
---|---|
AAA | Exceptionally strong. Unlikely to be affected by change. |
AA+/AA/AA- | Very strong. Moderate risk factors. Very strong ability to meet obligations. |
A+/A/A- | Strong. Moderate risk factors. Strong ability to meet obligations. |
BBB+/BBB/BBB- | Good. Risk factors may be somewhat high. Good ability to meet obligations. |
BB+/BB/BB- | Moderately weak. Uncertain ability to meeto obligations. |
B+/B/B- | Weak. Poor ability to meet obligations. |
CCC+/CCC/CCC-/CC+/C/C- | Very weak. Insurers in any of these ratings viewed as having poor ability to meet obligations. |
DDD/DD/D | Distressed. Insurers have either failed to meet obligations or are under regulatory supervision/intervention. |
NR | Not rated. |
TheStreet.com Ratings, Inc.
Grade | |
---|---|
A+/A/A- | |
Interpretation | Excellent financial security. Strong ability to deal with economic adversity. |
B+/B/B- | |
Interpretation | Good financial security. Severe economic conditions may effect this company. |
C+/C/C- | |
Interpretation | Fair financial security. Susceptible to downturns in the economy. |
D+/D/D- | |
Interpretation | Weak financial security. Could impact policyholders. |
E+/E | |
Interpretation | Very weak financial security. Significant risk, even in a stable economy. |
F | |
Interpretation | Failed. Under supervision of state insurance commissioners. |
U | |
Interpretation | Unrated. |
Grade | Interpretation |
---|---|
A+/A/A- | Excellent financial security. Strong ability to deal with economic adversity. |
B+/B/B- | Good financial security. Severe economic conditions may effect this company. |
C+/C/C- | Fair financial security. Susceptible to downturns in the economy. |
D+/D/D- | Weak financial security. Could impact policyholders. |
E+/E | Very weak financial security. Significant risk, even in a stable economy. |
F | Failed. Under supervision of state insurance commissioners. |
U | Unrated. |
Note: Some of the classifications of the above rating companies are broken down into more levels than illustrated. The financial strength of an insurance company is a very important factor to consider in purchasing life insurance or annuities .
Submit An Insurance Inquiry Contact Us