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Why a Best's Financial Strength Rating is Important

Insurance agents, brokers, financial advisors, banks and other insurance professionals utilize Best's Financial Strength Ratings to help support their insurance carrier selection and investment decisions.

In recent years, ratings have also become increasingly important in helping consumers themselves make decisions on which insurers to buy coverage from, whether it is to protect their lifestyle or their future financial well being.

Best's Financial Strength Ratings provide an independent third-party evaluation to help determine the ability of an insurer to fulfill its financial obligations with regard to life, homeowners and other insurance products to you -- the policyholder. Our rating process subjects all insurers to the same rigorous criteria, providing a valuable benchmark for comparing insurers.

Not all of the insurers you find on our site are assigned a Best's Financial Strength Rating. For those insurers that participate in our interactive rating process, the following scale outlines the ratings and descriptions assigned to them. View our online Guide to Financial Strength Ratings for complete definitions.

Secure Ratings
What it Means
Vulnerable Ratings
What it Means
A++, A+ (Superior) Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations. B, B- (Fair) Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions
A, A- (Excellent) Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations. C++, C+ (Marginal) Assigned to companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
B++, B+ (Good) Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. C, C- (Weak) Assigned to companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.
D (Poor) Assigned to companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions.
E (Under Regulatory Supervision) not applicable
F (In Liquidation) not applicable
S (Rating Suspended) not applicable

Those companies that A.M. Best reports on, but have not been assigned a Best's Financial Strength Rating, are designated as NR (Not Rated).

Finally, there will also be some insurers for whom A.M. Best has some basic information, but have not been assigned either a Financial Strength Rating or a Not Rated Category. For a complete description of these and other Best's Ratings, please visit our Best's Rating Center.

A.M. Best Co.was founded in 1899 with the purpose of performing "a constructive and objective role in the insurance industry toward the prevention and detection of insurer insolvency." This mission led to the development of Best's Ratings, which are now recognized worldwide as the benchmark for assessing insurers' financial strength. In 1906, A.M. Best produced its first alphabetical ratings.

NOTE: The Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold, or terminate any insurance policy, contract, or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. For additional details, see A.M. Best's Terms of Use at http://www.ambest.com/terms.html.