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Best's Financial Strength Rating

Effective March 31, 2015

A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. For more detailed information, read our Guide to Financial Strength Ratings.

Our rating process incorporates specific methodologies designed to address the Property/Casualty (Non-Life), Life/Annuity, and Health/HMO industry segments worldwide. View the complete Best's Credit Rating Methodology (BCRM).

A.M. Best's rating system has a proven track record in indicating insurance companies that may, over time, encounter financial difficulties (see Best's Impairment Studies: Life/Health, Property/Casualty). As such, a Best's FSR is recognized worldwide as the benchmark for assessing and comparing insurers' financial strength. Such a benchmark is increasingly important to an international market that looks for a strong indication of stability in the face of widespread deregulation, mergers, acquisitions and other dynamic factors.

Why a Best's Financial Strength Rating Is Important

For insurance companies, a Best's FSR is a strategic tool that can enhance consumers' confidence in the organization's stability, as well as its attractiveness to investors. A rating also enhances an insurer's credibility with reinsurers - a valuable resource, particularly for insurers entering new markets.

Insurance professionals depend on a Best's FSR to assess the creditworthiness of an insurer's operations, to evaluate prospective reinsurance accounts, to compare company performance and financial condition, and more. A rating can influence an agent's selection of plans to market.

A rating also is an important factor in the consumer's decision-making process to purchase insurance. Today's insurance consumers are well aware of how regional, political and economic instabilities can affect a marginal company. A Best's FSR can provide consumers with the information necessary for an educated buying decision.

A.M. Best Company is committed to maintaining Best's FSRs as the definitive source for information on the financial condition and operating performance of insurance companies worldwide. A Best's FSR opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders. View our Important Notice for complete details.

Usage of Best's Ratings

Best's Credit Ratings are proprietary and may not be reproduced without permission from A.M. Best. A company assigned a Best's Credit Rating should review the Guide to Proper Use, which outlines the acceptable parameters of the use of these ratings.

All queries regarding the use of proprietary information or to obtain a licensing agreement or a letter of consent should be directed to:
A.M. Best Company, Office of Intellectual Property
Ambest Road, Oldwick, New Jersey 08858

Phone: (908) 439-2200, ext. 5644

View our Legal and Licensing information for details on the use of A.M. Best trademarks, logos and service marks.

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