Insurance companies are rated by five major rating services. Each service uses its own criteria to issue a “report card” for the companies it rates. Although each service uses an alphabetical rating scale, an A+ from one service may not mean the same as an A+ from another. The following chart lists the ratings available from the five companies and groups them by rating strength.
Rating Description
|
Rating Service
|
||||
A.M. Best
|
Fitch
|
Moody’s
|
Standard & Poor’s
|
TheStreet.com
|
|
Superior:
Minimal risk of financial instability, most able to meet claim obligations. |
A++
A+ |
AAA
|
Aaa
|
AAA
|
A+
|
Excellent:
financially strong with excellent claims-paying ability. |
A
A- |
AA+
AA A- |
Aa1
Aa2 Aa3 |
AA+ |
A
A- |
Good:
good claims-paying ability, stronger than the average company. |
B++
B+ |
A+
A A- |
A1
A2 A3 |
A+
A A- |
B+
B B- |
Adequate:
higher risk than “good” rating. |
B B- |
BBB+
BBB BBB- |
Baa1
Baa2 Baa3 |
BBB+
BBB BBB- |
C+
C C- |
Below Average:
below-average claims-paying ability and financial strength. |
C++
C+ |
BB+
BB BB- |
Ba1
Ba2 Ba3 |
BB+
BB BB- |
D+
D D- |
Financially Weak:
high degree of risk, vulnerable to default. |
C |
B+
B B- |
B1
B2 B3 |
B+
B B- |
E+
E E- |
Nonviable:
extremely risky, in or near default |
E |
CCC |
Caa
Ca C |
CCC
CC R |
F
|
To get rating information, visit the rating services’ websites or call their customer service departments. Most rating services provide free rating information to consumers, although you may have to pay if you need more than a few ratings. Ratings can be found in books and magazines available at your local library. You can also ask your insurance agent or broker for rating information.
If you have questions or need assistance, contact the insurance experts at Henssler Financial: 770-429-9166 or experts@henssler.com.