The Value of a Best’s Financial Strength Rating
When choosing an insurance carrier for your personal or business needs, it ’ randomness essential that the party you select is financially potent and has the ability to meet its obligations to policyholders. Independent credit rat agencies provide current information on insurance company fiscal strength and stability to help you make an inform decision about your policy coverage .
Founded in 1899, AM Best is the global ’ s largest credit rating evaluation means specializing in the indemnity industry. Our customers include agents, brokers, investors, regulators, educators and policyholders concern in measuring and managing insurance-related risks. Headquartered in the United States, the company does occupation in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City .
AM Best Rating Services assesses the creditworthiness of and/or reports on over 16,000 insurance companies worldwide. Our accredit ratings summarize our opinion on an policy party ’ randomness ability to pay claims, debts and other fiscal obligations in a timely manner. Our comment, inquiry and analysis provide extra penetration.
AM Best analyzes a range of components when determining an insurance company ’ sulfur claims paying ability, including :
- Balance sheet strength
- Operating performance
- Business profile
- Enterprise risk management
insurance companies are complex institutions that pay claims with funds acquired through the premiums paid by their customers and investing incomes. AM Best besides evaluates their investing risks, a well as the cover risks, which determine the likelihood and measure of a claims payout over the liveliness of a policy.
AM Best is the alone Nationally Recognized Statistical Rating Organization ( NRSRO ) registered by the Securities & Exchange Commission ( SEC ) that focuses entirely on the policy industry. For more information about the SEC, visit hypertext transfer protocol : //www.sec.gov/ .
The come scale outlines the ratings and descriptions assigned to insurance companies rated by AM Best. View our on-line Guide to Financial Strength Ratings for arrant definitions .
| Financial Strength Rating | Definition |
|---|---|
| A++, A+ (Superior) | Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations |
| A, A- (Excellent) | Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations |
| B++, B+ (Good) | Assigned to companies that have, in our opinion, a good 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 |
| 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. |
| 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 |
For more information about AM Best Ratings, please travel to : hypertext transfer protocol : //www.ambest.com/ratings/about.html .