What is the significance of and insurance company’s A.M. Best rating?

For insurance companies, their financial strength rating is a strategic tool that can enhance consumers’ confidence in the organization’s financial 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 financial strength rating 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.
The rating scale and descriptors are:


  • A++, A+ (superior)
  • A, A- (excellent)
  • B++, B+ (good)


  • B, B- (fair)
  • C++, C+ (marginal)
  • C, C- (weak)
  • D (poor)
  • E (under regulatory supervision)
  • F (in liquidation)
  • S (suspended)