A.M. Best Ratings for Insurance Companies

So, what is an A.M. Best rating for insurance companies? An AM Best rating represents the company’s assessment of an insurer’s ability to meet its obligations to policyholders. For an insurance company, there is nothing more important than it’s financial strength and ability to pay claims to policyholders.

AM Best ratings of life insurance companies are very important to us when selecting a life insurance company four our clients.We monitor the financial strength and claims paying ability of life insurance companies by using A.M. Best and a number of different rating agencies.

Ratings agencies assist policyholders by assessing a grade based on the financial strength and claims paying ability of each insurance company.

About A.M. Best Ratings of Insurance Companies

A.M. Best is the only ratings agency that specializes solely in the insurance industry. Other  rating services like Moody’s, Fitch and Standard & Poor’s rate debt instruments in other industries in addition to insurance. A.M. Best ratings of insurance companies focuses on a carriers claims paying ability and the credit quality of its obligations.

A.M. Best was started in New York City in 1899 by Alfred Best, and is located in Oldwick, New Jersey. Both the U.S. Securities and Exchange Commission (SEC) and the National Association of Insurance Commissioners (NAIC) have designated the company as a nationally recognized rating company.

A.M. Best ratings for insurance companies provides a letter grade on their scale as well as and future outlook projection. They assess insurance companies with an outlook of either positive, negative, or stable.

When you start looking for a life insurance policy, is is very important that you have a reputable insurance company.  We always advise our clients to evaluate the A.M. Best ratings of insurance companies you considering for your family.

What Is My Companies AM Best Rating?

How would you like to get some cheap life insurance quotes, and also know the Am Best rating for any insurance company you are considering?

No problem!

Affordable Life US makes finding cheap life insurance rates easy!

To compare life insurance rates just press “Get Quote”:

am best rating Evaluating 10, 15, or 20 year term life insurance quotes from only the highest rates companies is easy with our life insurance rate calculator. After you get your instant quote, you will also notice a letter grade associated with each life insurance company.

But, what does the Am Best letter grade mean when choosing highly rated life insurance companies financial ratings from A.M Best? Here is a brief summary of the common AM Best rating definitions, which will be further defined with the AM Best ratings scale.

 

am best

The A.M. Best Insurance Ratings Scale

The AM Best rating for  insurance companies utilizes a basic method of grading insurance companies which has proven to be an easy to understand practice which is used by all the rating services.

Here is a summary of how the A.M. Best insurance ratings scale works:

  • The Financial Strength Ratings (FSR) represents an AMBest grade of an insurer’s ability to meet its obligations to policyholders.
  • The ratings scale includes six “Secure” ratings: A++, A+ (Superior) A, A− (Excellent) and B++ and B+ (Very Good).
  • The ratings scale also includes six “Vulnerable” rating grades.

Secure Best’s Ratings

A.M. Best ratings of insurance companies include a letter grade (A++ to F)  to carriers that subscribe to their interactive rating service. A.M. Best ratings for insurance companies also features an opinion based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile.

  • A++ and A+ (Superior) These grades are assigned to companies that have, in their opinion, a superior ability to meet their ongoing obligations to policyholders.
  • A and A- (Excellent) These grades are assigned to companies that have, in their opinion, an excellent ability to meet their ongoing obligations to policyholders.
  • B++ and B+ (Very Good)  These grades are assigned to companies that have, in our opinion, a good ability to meet their ongoing obligations to policyholders.

The ratings scale also includes six “Vulnerable” rating grades. You most likely do not want to consider a policy from an insurance company which has been graded with a vulnerable rating.

Vulnerable Best’s Ratings

  • B and B- (Fair) These grades are assigned to companies that have, in their opinion, a fair ability to meet their current obligations to policyholders, but are financially vulnerable to adverse changes in underwriting and economic conditions.
  • C++ and C+ (Marginal) These grades are assigned to companies that have, in their opinion, a marginal ability to meet their current obligations to policyholders, but are financially vulnerable to adverse changes in underwriting and economic conditions.
  • C and C- (Weak) These grades are assigned to companies that have, in their opinion, a weak ability to meet their current obligations to policyholders, but are financially very vulnerable to adverse changes in underwriting and economic conditions.
  • D (Poor)  These grades are assigned to companies that, in their opinion, may not have an ability to meet their current obligations to policyholders and are financially extremely vulnerable to adverse changes in underwriting and economic conditions.
  • E (Under Regulatory Supervision) These grades are assigned to companies (and possibly their subsidiaries/affiliates) that have been placed by an insurance regulatory authority under a significant form of supervision, control or restraint, whereby they are no longer allowed to conduct normal ongoing insurance operations. This would include conservatorship or rehabilitation, but does not include liquidation. It may also be assigned to companies issued cease and desist orders by regulators outside their home state or country.
  • F (In Liquidation) These grades are assigned to companies that have been placed under an order of liquidation by a court of law or whose owners have voluntarily agreed to liquidate the company. Note: Companies that voluntarily liquidate or dissolve their charters are generally not insolvent.
  • S (Rating Suspended) These grades are assigned to rated companies that have experienced sudden and significant events affecting their balance sheet strength or operating performance whose rating implications cannot be evaluated due to a lack of timely or adequate information.

Other Independent Insurance Rating Companies

am best Life insurance company ratings

You can also evaluate other impartial rating companies like Standard and Poor’s, Fitch, and Mood’s. Try to stay with companies with the highest overall ratings from all these great independent sources.

A.M. Best’s strongest financial ratings are A++ and A+, while the best from Fitch and Standard & Poor’s are AAA and AA. The top ratings at Moody’s are Aaa and Aa.

In order to take an aggregate of all rating agencies, and put them all on a level playing field, an easier option is to use is a Comdex Score.

A Comdex Score  is a composite score of all the evaluations a life insurance company has available, and puts each company into one single, 1-100 point scale in relation to other companies that have been rated by the rating services.

Always Get Quotes with a Superior AM Best Rating

If you want to evaluate quotes and plans from only the highest rated life insurance companies, the answer is simple and easy!

You can get great quotes and learn more about the AM Best rating for each life insurance company. We recommend only selecting A+ rated carriers from A.M. Best from the insurance company ratings list included with your quotes.

AM Best Ratings for Insurance CompaniesUpon request, we can also provide you with detailed insurance company ratings list. This report will also include other financial ratings companies like S&P, Fitch, and Mood’s, and a composite Comdex Score.

This score is excellent method to reduce the confusion over life insurance ratings. To obtain your detailed free report for any life insurance company, please call us at 1-877-249-1358.

Here is an insurance company ratings list of the AM Best,  A + rated life insurance companies we currently represent:

AM Best Ratings for Insurance Companies

COMPANY Am Best Rating
Am Best Rating for AIG A +
Am Best Rating for Banner Life A +
Am Best Rating for Mass Mutual A +
Am Best Rating for Met Life A +
Am Best Rating for North American Life A +
Am Best Rating for Pacific Life A +
Am Best Rating for Principal Life A +
Am Best Rating for Protective A +
Am Best Rating for Prudential A +
Am Best Rating for Safeco A +
Am Best Rating for Transamerica A +
Am Best Rating for United of Omaha A +

Introducing Eric Van Haaften:

Eric Van Haaften

Affordable Life USA is a nationally licensed and independently operated life insurance agency. The agency was started by Eric Van Haaften, over 25 years ago, from our home office located in Grand Rapids, Michigan. Please feel free to email him at: eric@affordablelifeusa.com, or call us at 1-877-249-1358.