The above referenced ratings are
determined at least annually after the rating agency meets with
company management and extensively reviews long-term financial
strength. The rating agencies evaluate the strengths and
strategies of company management, the operating results of the
business units, investment performance, and capitalization.
Industry ratings are not a warranty of an insurer's current or future
ability to meet its contractual obligations. Ratings may be
changed, suspended or withdrawn as a result of changes in
A.M. Best has 15 rating categories
ranging from A++ to F. A rating of A+ is assigned to companies
which, in Best's opinion, have demonstrated superior overall
performance. These companies have a very strong ability to meet
their obligations to policyholders over a long period of time.
Moody's has 21 categories of
insurance financial strength ratings ranging from Aaa to C.
Ratings from Aaa to Baa indicate strong companies, and ratings from Ba
to C indicate weak companies. Insurance companies rated A offer
"good" financial security. However, elements may be
present which suggest a susceptibility to impairment sometime in the
future. Numeric modifiers refer to the ranking within the group,
one being the highest and three being the lowest.
Standard and Poor's
Standard & Poor's has eight
insurer financial strength ratings. An insurer rated BBB or
above is regarded by Standard & Poor's as having financial
security characteristics that outweigh any vulnerabilities, and is
highly likely to have the ability to meet its financial commitments.
An insurer rated BB or lower is regarded as having vulnerable
characteristics that may outweigh its strengths. The AA category
is the second-highest category.
Fitch's Rating Company
Fitch's Rating Company has 24
claims-paying ability ratings categories ranging from AAA to DD.
A rating of AA indicates a very high claims-paying ability.
Protection factors are strong. Risk is modest but may vary
slightly over time due to economic and/or underwriting