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Insurer Financial Strength Ratings
An Insurer rated in the ‘BBB’ range or higher is regarded as having financial security
characteristics that outweigh any vulnerabilities, and is highly likely to have the
ability to meet financial commitments.
Ratings from ‘AAA’ to ‘BBB-‘are often described
as ‘secure’ or ‘investment grade’
Plus (+) or minus (-) signs following ratings from ‘AA’ to ‘CCC’ show relative standing within the major rating categories.
AAA
An insurer rated ‘AAA’ has EXTREMELY STRONG financial security characteristics.
’AAA’ is the highest Insurer Financial Strength Rating assigned by Standard & Poor’s.
AA
An insurer rated ‘AA’ has` VERY STRONG financial security characteristics, differing only slightly from those rated higher.
A
An insurer rated ‘A’ has STRONG financial security characteristics, but is somewhat more likely to be affected by adverse financial conditions than are insurers with higher ratings.
BBB
An insurer rated ‘BBB’ has GOOD financial security characteristics, but is somewhat more likely to be affected by adverse financial conditions than are insurers with higher ratings.
An insurer rated ‘BB’ or lower is regarded as having vulnerable characteristics that may outweigh its strengths. ‘BB’ indicates the least degree of vulnerability within the range; ‘CC’ the highest.
Ratings between BB+ and CC are often described as ‘vulnerable’ or ‘non-investment’ grades
BB
An insurer rated ‘BB’ has MARGINAL financial security characteristics. Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments.
B
An insurer rated ‘B’ has WEAK financial security characteristics. Adverse business conditions will likely impair its ability to meet financial commitments.
CCC
An insurer rated ‘CCC’ has VERY WEAK financial security characteristics, and is dependent on favourable business conditions to meet financial commitments.
CC
An insurer rated ‘CC’ has EXTREMELY WEAK financial security characteristics and is likely not to meet financial commitments.
R
An Insurer rated ‘R’ has experienced a REGULATORY ACTION regarding insolvency. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.
NR
An insurer designated ‘NR’ is NOT RATED, which implies no opinion about the insurer’s financial security.