Life Insurance Company Ratings List
American health and life insurance company ratings are provided by many organizations that examine the firm’s financial strength and security and give a ranking based on how sound their analysts find the company. These ratings can show the ability of the company to meet the obligations of the health and insurance policies they have written and the risk level of any financial instruments, such as bonds or securitization products that the company has issued.
A. M. Best Company, Inc is one of the rating agencies that evaluate companies in the United States. They have 16 possible scores, ranging from A++ for companies deemed superior to F for those that are in liquidation and S for companies that have been suspended from being rated. Standard and Poor’s, Moody’s and Fitch Ratings also do evaluations of insurance companies financials, however A. M. Best has historically specialized in American health and life insurance company ratings.
Most investors and industry analysts will look at ratings from all relevant firms when making a decision on whether or not to invest with a particular insurance company.
Some of the factors that go into determining the health of an company are doing a thorough examination of the balance sheet, evaluating the performance of the businesses operation in comparison with other firms and an analysis of how the company is managed, including general managerial philosophies and written plans for the operation of the company.
The exact formula that each rating organization uses to determine the grade given is proprietary but all are looking to see if the insurance company has solid finances and good management practices. Check Internet #1 Life Insurance Company Ratings List right now!
A low rating given by one or more of these firms is a sign that an insurance company is in poor health and will discourage investors from continuing to buy their stocks and other financial instruments. If the company can not figure out a way to gain a high rating and restore investor and consumer confidence it might find itself unable to meet it’s obligations to policyholders and bankruptcy and liquidation are possible outcomes. Consumers would be wise to check out the ratings agency scores for any company before they buy a policy to protect their investment and to insure that their coverage needs will be met without delay or complication. This is particularly important for consumers looking to buy investment vehicles offered by many life companies such as whole life insurance policies and annuities.
Ratings companies do not only evaluate corporations that are American. Health and Life insurance ratings are determined for insurers all over the globe and are an important part of making sure that the insurance industry stays stable throughout the world. Check Internet #1 Life Insurance Company Ratings List right now!
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