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Rating Services

Six major credit agencies determine insurers' financial strength and viability to meet claim obligations.

They are:

Please Note: These are independent insurance company rating organizations. Their appearance on the department’s website is meant for the convenience of the department’s consumers and is not an endorsement of either organization by the Department of Financial Services.

Factors considered include company earnings, capital adequacy, operating leverage, liquidity, investment performance, reinsurance programs, and management ability, integrity and experience. A high financial rating is not the same as a high consumer satisfaction rating. The ratings generally are shown as A++ (being the best) to D or E.

Rating services develop their own criteria for rating insurance companies. For instance, A.M. Best doesn't rate insurance companies with less than five years of financial data. Since the rating companies develop their own rating criteria, an insurance company's rating may be different between rating services.

DemoTech - for newer companies

  • Not a predictor of future performance
  • Doesn't take into account consumer issues

Insurance company investment factors can impact their ratings when the stock market takes a downturn.

Example: 2001 stock market downturn after 9/11.