| Annuity ratings can be helpful in finding the best | | | | ability to make good on its promises with letter |
| annuity provider and plan. It's important to find a | | | | grades that range from A++ to C-. Fitch and |
| seller - usually an insurance company - that is | | | | Standard & Poor's measure the ability of an |
| financially sound and stable enough to meet its | | | | insurer to pay claims and use a system similar to |
| promises over the long term. Annuity ratings are | | | | that for rating bonds, with letter grades ranging |
| provided by several professional ratings | | | | from AAA to B-. |
| organizations, including A.M. Best Company, | | | | Typically, an insurance company with a high |
| Moody's Investors Service, Standard & | | | | ranking at one ratings service will receive a similar |
| Poor's, Fitch, Inc., and Weiss Ratings, Inc. These | | | | rating at another ratings service, but since the |
| organizations keep an eye on the financial | | | | services measure different things, rankings may |
| condition of annuity providers and issue rankings | | | | vary. That's why it is recommended that you look |
| of the firms. It's always best to select a highly | | | | at the rankings provided by different ratings firms. |
| rated insurance firm over a firm with low ratings. | | | | Where to Get Annuity Ratings |
| What Do They Look For | | | | Experts recommend checking the ratings provided |
| The ratings services usually look at factors that | | | | by several ratings firms, since each one has its |
| include the ability of an insurer to pay claims, the | | | | own methods for ranking the annuity providers, |
| insurer's financial strength as measured by the | | | | and the ratings companies may disagree about an |
| reserves stored to make payouts, the financial | | | | insurer's rating as well. When looking for annuity |
| history of a firm that may show insolvency or | | | | ratings, choose companies that offer independent |
| inability to pay its debts in the past, and the | | | | research over those that rely on data provided |
| soundness of the insurer's general account | | | | by the annuity sellers themselves. |
| investments. | | | | Below you'll find the names, website addresses, |
| Ratings companies usually assign a letter grade to | | | | and telephone numbers of several annuity ratings |
| each insurer evaluated. A.M. Best is the oldest of | | | | companies. |
| the ratings services, and it focuses on measuring | | | | A.M. Best Company Inc. |
| the relative financial strength of an insurer and its | | | | |