What are the Best Life Insurance Company Ratings
Recent economic conditions have underscored the importance of knowing your life insurance provider’s financial rating. While some companies have slipped, many remain strong. Use this list of top 50 life insurance company ratings to find a solid provider. All scores come from A.M. Best, Moody’s, Standard & Poor’s, and Fitch — the four top financial rating institutions.
The best life insurance companies of 2009 according to A.M. Best are:
- New York Life: A++, stable outlook
- Mass Mutual: A++, stable outlook
- State Farm: A++, stable outlook
- Geico: A++, stable outlook
Stable A+ companies include: Metlife, John Hancock, Mutual of Omaha, and Jackson National.
| Company: | A.M. Best: | Moody’s: | S&P: | Fitch: |
|---|---|---|---|---|
| 21st Century | A | – | A | A+ |
| AIG Life | A | A1 | A+ | A- |
| Allstate | A+ | A1 | AA- | A |
| Allianz | A | A2 | AA | AA |
| Amica | A+ | – | – | – |
| American General | A | A1 | A+ | A- |
| Banner Life | A+ | – | AA- | – |
| American National | A | – | AA- | – |
| Aviva | A | A1 | AA- | A+ |
| Axa Equitable | A | Aa3 | AA | AA- |
| Colonial Penn | B | Ba2 | BB- | BB+ |
| Empire General | A | – | – | – |
| EquiTrust | B+ | – | – | – |
| Farmers | A | – | – | – |
| Fidelity | A+ | – | A+ | AA |
| Genworth Life | A | A2 | A | A- |
| Geico | A++ | Aa3 | AAA | AA+ |
| Hartford Life | A | A3 | A | A- |
| ING | A | A1 | A+ | AA- |
| Integrity Life | A+ | Aa3 | AA+ | AA |
| Kansas City Life | A | – | A | – |
| Jackson National | A+ | A1 | – | AA |
| Jefferson National | B- | – | – | – |
| John Hancock | A+ | Aa3 | AA+ | AA |
| Liberty Mutual | A | Baa1 | A- | A- |
| Lincoln National | A+ | A2 | AA- | A+ |
| Mass Mutual | A++ | Aa1 | – | AAA |
| MetLife | A+ | Aa2 | AA- | AA |
| Midland National | A+ | – | A+ | A |
| Monumental Life | A | A1 | AA- | AA |
| Mutual of Omaha | A+ | Aa3 | – | – |
| Nationwide Life | A+ | A1 | A+ | A |
| New York Life | A++ | Aaa | AAA | AAA |
| North American | A+ | – | A+ | A |
| Ohio National | A+ | – | – | – |
| Old Mutual | A | A1 | – | BBB- |
| Pacific Life | A+ | A1 | AA- | AA- |
| Penn Mutual | A+ | Aa3 | – | – |
| Presidential | B+ | – | – | – |
| Protective | A+ | A2 | AA- | A+ |
| Prudential | A+ | A2 | AA- | A+ |
| ReliaStar | A | A1 | A+ | AA- |
| Riversource | A+ | – | AA- | AA- |
| Standard Life | A | – | A | A+ |
| State Farm | A++ | Aa1 | – | AA+ |
| SunAmerica | A | A1 | A+ | A- |
| The Travelers | A | A2 | AA- | AA |
| Transamerica | A | A1 | AA- | AA |
| West Coast Life | A+ | A2 | AA- | A+ |
| Zurich American | A | – | AA- | A+ |
*Company ratings as of 07/24/2009. Subject to change without notice. ** A dash (-) indicates that the company wasn’t rated or ratings were out-of-date.
A.M. Best Rating Explanations
| Rating: | Description: | Definition: |
|---|---|---|
| A++, A+ | Superior | Able to meet insurance obligations. |
| A, A- | Excellent | Able to meet insurance obligations. |
| B++, B+ | Good | Able to meet insurance obligations. |
| B, B- | Fair | Vulnerable to unfavourable economic conditions. |
| C++, C+ | Marginal | Vulnerable to unfavourable economic conditions. |
| C, C- | Weak | Very vulnerable to unfavourable economic conditions. |
| D | Poor | Extremely vulnerable to unfavourable economic conditions. |
| E | Under Supervision | Company is under regulation, preventing normal business operations. |
| F | In Liquidation | Company is ongoing voluntary liquidation. |
| S | Suspended | Unevaluated due to inadequate information or lack of cooperation. |
Moody’s Rating Explanations
| Rating: | Description: | Definition: |
|---|---|---|
| AAA | Extremely Strong | Market conditions are unlikely to affect a fundamentally strong position. |
| AA | Very Strong | High-grade company with marginally larger long-term risks. |
| A | Strong | Financially secure, but signs of possible long-term susceptibility. |
| Baa | Adequate | Lacking in certain protective elements over the long term. |
| Ba | Questionable | Ability to meet obligations is questionable. |
| B | Poor | Long-term ability to meet obligations on time is small. |
| Caa | Very Poor | May be in default of financial obligations already. |
| Ca | Extremely Poor | In default of financial obligations. |
| C | Extremely Poor | Very poorly positioned to offer financial security. |
S&P Rating Explanations
| Rating: | Description: | Definition: |
|---|---|---|
| AAA | Extremely Strong | Very unlikely to be affected by adverse economic conditions. |
| AA | Very Strong | Unlikely to be affected by adverse economic conditions. |
| A | Strong | Marginally more likely to be affected by adverse economic conditions. |
| BBB | Good | May be affected by adverse business conditions. |
| BB | Marginal | Adverse business conditions may lead to inability to meet obligations. |
| B | Weak | Adverse business conditions are likely to affect ability to meet obligations. |
| CCC | Very Weak | Depends on favourable business conditions to meet obligations. |
| CC | Extremely | Likely to not meet all financial obligations. |
| R | Regulatory Action | Subject to regulation due to insolvency. |
| NR | Not Rated | No opinion. |
Fitch Rating Explanations
| Rating: | Description: | Definition: |
|---|---|---|
| AAA | Exceptionally Strong | Very unlikely to be affected by adverse economic conditions. |
| AA | Very Strong | Not significantly vulnerable to adverse economic conditions. |
| A | Strong | Low expectation for interruption of payments. |
| BBB | Good | May be affected by adverse economic conditions. |
| BB | Moderately Weak | Contractual obligations are now vulnerable. |
| B | Weak | Significant risk for interruption of payments. |
| CCC | Very Weak | Strong likelihood for interruption of payments. |
| CC | Extremely Weak | Interruption of payments is probable. |
| C | Distressed | Interruption of payments is imminent. |