Insurance Company Independent Financial Ratings Guide

There are independent firms who provide ratings for life and health insurance companies we use. These independent firms include A.M. Best Company, Standard and Poor’s, Moody’s and Duff & Phelps among others. These independent ratings reflect the opinions of the rating agencies and are not implied warranties of the insurer’s ability to met contractual obligations.

A.M. Best

Ratings represent an independent opinion from a provider of insurer ratings of a company’s financial strength and ability to meet its obligations to policyholders.

Standard & Poor’s

Claims-paying ability rating is an opinion of an operating insurance company’s financial capacity to meet the obligations of it insurance policies in accordance with their terms.

Moody’s Insurance Financial Strength

Ratings are opinions of the rating agency on the ability of the insurance companies to repay punctually senior policyholder claims and obligations.

Duff & Phelps

Ratings are opinions of the rating agency on the ability of insurance companies to meet their claim obligations and their obligations to service debt.

The Numerical Equivalence is the number which is shown in parentheses next to each rating indicating where that particular rating falls in the rating scale.

Rank
A.M. Best
Standard & Poor’s
Moody’s
Duff & Phelps
1
A++
AAA Aaa AAA
2
A+
AA+ Aa1 AA+
3
A
AA Aa2 AA
4
A-
AA- Aa3 AA-
5
B++
A+ A1 A+
6
B+
A A2 A
7
B
A- A3 A-
8
B-
BBB+ Baa1 BBB+
9
C++
BBB Baa2 BBB
10
C+
BBB- Baa3 BBB-
11
C
BB+ Ba1 BB+
12
C-
BB Ba2 BB
13
D
BB- Ba3 BB-
14
E
B+ B1 B+
15
F
B B2 B
16
B- B3 B-
17
CCC+ Caa1 CCC
18
CCC Caa2 DD
19
CCC- Caa3
20
CC Ca
21
C

Quantitative ratings, offered by Standard & Poor’s, denoted with a ‘q’ subscript, were discontinued in 1997. The ratings were based solely on quantitative analysis of publicly available financial data. Standard & Poor’s now offers ‘pi’ ratings, denoted with a ‘pi’ subscript, are Insurer Financial Strength Ratings based on an analysis of published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer’s management and are therefore based on less comprehensive information that ratings without a ‘pi’ subscript. Watch list identifiers occasionally follow that ratings (A.M. Best, Standard & Poor’s, Moody’s and Duff & Phelps) if the company is on the rating service’s watch list.

The identifier indicates a possible upgrade (w+), downgrade (w-), or unknown change (w) in the particular rating.