At Insurance & Estates, we understand that selecting the right life insurance company is a vital financial decision that impacts your family’s long-term security. As specialists in strategic life insurance solutions, we’ve compiled this comprehensive guide to help you understand how to interpret insurance company financial ratings and what they mean for your policy’s safety and performance. Our Pro Client Guides use this same information when designing custom policy solutions tailored to your unique financial goals.
📊 Quick Facts About Insurance Company Ratings
- 4 major agencies rate insurance companies in the U.S.
- A.M. Best is the gold standard for insurance-specific ratings
- A+ or higher indicates excellent financial strength
- COMDEX scores above 90 represent top-tier companies
- 150+ years of rating agency experience guides these evaluations
How to Read Life Insurance Company Ratings: What You Need to Know
When choosing a life insurance company, you want to make sure they’ll be around when your family needs them most. Think of insurance company ratings like report cards that tell you how financially strong and reliable each company is. Four major agencies grade these companies, and here’s what you need to know about each one. Understanding the life insurance company ratings will help you make the tough decision on which one of the many life insurance companies available is going to be the right fit for you.
The ability of the company you choose to meet financial obligations and pay claims should be a vital ingredient that goes into your final decision making process. When evaluating a life insurance company’s financial strength, you will notice the financial ratings from the different ratings agencies vary.
Be aware that an A+ from one rating agency is not necessarily on par with another ratings agencies A+. That is why we are providing the following life insurance company ratings overview, so we can help you recognize who the strongest rated companies are.
Each of the ratings agencies, A.M. Best, Moody’s, Fitch and Standard and Poor’s are a Nationally Recognized Statistical Rating Organization (NRSRO). The SEC allows NRSROs to offer ratings to insurers that demonstrate the strength of the various insurance companies reserves. These ratings agencies have a high standard to live up to, which should give you some peace of mind about your final decision. Think of them as independent auditors who examine each company’s finances and give them a grade based on their ability to pay claims and keep promises to policyholders.
For additional consumer guidance on insurance company financial strength and what ratings mean for policyholders, the National Association of Insurance Commissioners (NAIC) provides comprehensive resources to help consumers make informed decisions about insurance company selection.
Highest Rated Life Insurance Companies
The top 25 best rated companies below are chosen by us based on the company’s A.M. Best rating. We also listed the S&P rating, Moody’s rating and Fitch rating and COMDEX ranking of each company, where applicable. and reflect many of the companies that we write policies for.
What you won’t find on this list is some of the top rated companies that do not sell individual life insurance, or are lesser known captive companies.
If a particular rating agency has not given a rating to a carrier below we left that area blank.
To the best of our knowledge, all ratings are current as of February 2023.
| Company | A.M. Best | S&P | Moody's | Fitch | COMDEX Ranking |
|---|---|---|---|---|---|
| Northwestern Mutual | A++ | AA+ | Aaa | AAA | 100 |
| New York Life | A++ | AA+ | Aaa | AAA | 100 |
| Thrivent Life | A++ | N/A | N/A | ||
| Mass Mutual | A++ | AA+ | Aa3 | AA+ | 98 |
| State Farm | A++ | AA | Aa1 | 98 | |
| Guardian Life | A++ | AA+ | Aa1 | AA+ | 99 |
| Minnesota Life | A+ | AA- | Aa3 | AA | 96 |
| State Life Insurance Company | A+ | AA- | 96 | ||
| Lafayette Life | A+ | AA- | AA | 96 | |
| Securian | A+ | AA- | Aa3 | AA | 96 |
| MetLife | A+ | AA- | Aa3 | AA- | 95 |
| Allianz Life | A+ | AA | 94 | ||
| Prudential Pruco | A+ | AA- | Aa3 | AA- | 95 |
| Banner Life | A+ | AA- | AA- | 94 | |
| John Hancock | A+ | AA- | A1 | AA- | 93 |
| Lincoln National | A+ | AA- | A1 | A+ | 91 |
| Principal Life | A+ | A+ | A1 | AA- | 90 |
| Pacific Life | A+ | AA- | A1 | AA- | 93 |
| Protective Life | A+ | AA- | A1 | A+ | 92 |
| Nationwide Life | A+ | A+ | A1 | 90 | |
| Penn Mutual | A+ | A+ | Aa3 | 93 | |
| Mutual of Omaha | A+ | AA- | A1 | 90 | |
| Transamerica Life | A | A+ | A1 | 84 | |
| Ameritas | A | A+ | 83 | ||
| American General | A | A+ | A2 | A+ | 82 |
About Comdex Ranking
The Comdex rating for life insurance companies is brought to you by EbixExchange. Rather than try and decipher the different financial ratings, EbixExchange decided to create a composite index, which takes the average percentile of the different life insurance company’s financial strength ratings assigned by the different rating services, A.M. Best, Standard & Poor’s, Moody’s Investors Service and Fitch.
A company needs to have at least two ratings form the major ratings agencies in order to have a Comdex rating or ranking.
The rankings are on a scale of 1 – 100, and reflect the company’s ranking in relation to other companies that have also been ranked.
The closer the Comdex ranking is to 100, the higher that company ranked in relation to its peers.
Quick Rating Agency Comparison
| Rating Agency | Founded | Top Rating | Focus Area |
|---|---|---|---|
| A.M. Best | 1899 | A++ (Superior) | Insurance industry specialist |
| Standard & Poor’s | 1860s | AAA (Extremely Strong) | Credit ratings across industries |
| Moody’s | 1909 | Aaa (Highest) | Global credit analysis |
| Fitch | 1914 | AAA (Exceptionally Strong) | International rating services |
Expert Guidance
At Insurance & Estates, our Pro Client Guides carefully evaluate each company’s financial ratings as part of our comprehensive policy design process. We believe your life insurance should not only provide protection but serve as a cornerstone of your wealth-building strategy.
Rating Services Criteria Used
The top 4 best credit ratings agencies all have different criteria for arriving at the different ratings that they offer. However, some of the main areas of interest the agencies consider are:
- The ability of the insurance company to pay existing claims
- How well the company is capitalized
- How leveraged the company’s assets are
- What investments and risks has the insurer taken on
- The type of corporate governance and business structure
- How liquid are the company’s assets
- If the company has proper risk mitigation in place
These are some ideas on what a different ratings agency might be considering when determining the financial viability of an insurance company.
The ratings agencies take the totality of the information and break it down into grades. Each ratings agency has different methodologies and grading scales listed below.
For more on the top rated companies we represent see our articles featuring our favorite:
Ready to learn more about how properly structured cash value life insurance can become your personal banking system? Download our free guide:
THE ULTIMATE FREE DOWNLOAD
The Self Banking Blueprint
A Modern Approach To The Infinite Banking Concept
About A.M. Best Company
Alfred M. Best started the A.M. Best Company in 1899. Part of his goal was to provide financial stability reports on insurance companies.
Today, A.M. Best’s Credit Ratings are the gold standard when it comes to evaluating insurance provider’s financial strength and credit quality.
A.M. Best Company has 15 rating categories, including
- AAA, Exceptional
- AA, Superior (including AA+, AA-)
- A, Excellent (including A+, A-)
- BBB, Good (including BBB+, BBB-)
- BB, Fair (including BB+, BB-)
- B, Marginal (including B+, B-)
- CCC, Weak (including CCC+, CCC-)
- CC, Very Weak
- C, Poor
For more on A.M. Best Company, visit the website here.
About Standard and Poor’s Global Ratings
For over 150 years, Standard and Poor’s ratings have been used to help determine the financial viability of the insurer, particularly regarding its ability to pay all claims under existing contracts, i.e. policies.
S&P Global Ratings is the self proclaimed world’s leading provider of credit ratings and has more than one million credit ratings outstanding.
Standard and Poor’s has 21 rating categories, including:
- AAA, Extremely Strong
- AA, Very Strong
- A, Strong
- BBB, Good
- BB, Marginal
- B, Weak
- CCC, Very Weak
- CC, Extremely Weak
- R, Regulatory Supervision
- NR, Not Rated
In addition to the letter grade provided, plus or minus signs may also follow the ratings. These signs provide additional rating categories within the larger framework of the AA to CCC ratings.
For more on Standard and Poor’s, visit the website here.
About Fitch Ratings
Founded by John Knowles Fitch in 1914, Fitch Ratings is a credit ratings agency, offering financial rating services to companies in over 30 countries.
Fitch ratings include 21 categories, including:
- AAA, Exceptionally Strong
- AA+
- AA, Very Strong
- AA-
- A+
- A, Strong
- A-
- BBB+
- BBB, Good
- BBB-
- BB+
- BB, Moderately Weak
- BB-
- B+
- B, Weak
- B-
- CCC, Very Weak
- CC, Extremely Weak
- C, Distressed
- RD, Restricted Default
- D, Default
For more on FitchRatings, visit the website here.
About Moody’s Investor Service>
Founded by John Moody over 100 years ago, Moody’s Investor Service is a part of Moody’s Corporation. Moody’s Investor Service provides credit ratings, research and risk analysis in over 41 countries.
Moody’s has 21 rating categories, including:
- Aaa
- Aa
- A
- Baa
- Ba
- B
- Caa
- Ca
- C
In addition, Moody’s uses either a 1, 2 or 3 to modify the rating. With a modifier of 1 representing a higher rank; a 2 representing a mid-range ranking; and a 3 representing a ranking in the lower end of that particular category.
For example, in addition to the categories above, further enhancement of the ratings for the top level “A” designation would look like this:
- Aaa – Highest Rating
- Aa1 – High-Grade
- Aa2 – High-Grade
- Aa3 – High-Grade
- A1 – Upper-Medium Grade
- A2 – Upper-Medium Grade
- A3- Upper-Medium Grade
- Baa1 – Medium Grade
- Baa2 – Medium Grade
- Baa3 – Medium Grade
- Etc…
For more on Moody’s Investor Services, visit the website here.
Why Ratings Matter for Strategic Life Insurance
Most states provide protection through state guaranty associations for policyholders of failed insurers. However, when using life insurance as a financial tool rather than just death benefit protection, the long-term stability of your insurance carrier becomes even more critical. Here’s why:
For Infinite Banking Strategies
The banking concept relies on your ability to access policy cash values through loans for decades to come. Only financially strong companies can maintain competitive loan options and dividend performances over such extended periods.
For Retirement Income Planning
If you’re counting on your cash value life insurance to provide tax-advantaged retirement income, you need a carrier that will be around for the next 30+ years. A-rated and above companies offer that peace of mind.
For Business Planning Solutions
Key person insurance, buy-sell agreements, and executive benefits require insurance carriers that your business partners and stakeholders can trust completely.
At Insurance & Estates, we specialize in these advanced strategies and only work with carriers that meet our stringent financial rating requirements.
Ready to learn more about how properly structured cash value life insurance can become your personal banking system? Download our free guide:
THE ULTIMATE FREE DOWNLOAD
The Self Banking Blueprint
A Modern Approach To The Infinite Banking Concept
Frequently Asked Questions About Life Insurance Company Ratings
What does an A+ rating mean for my life insurance policy?
Which rating agency is most important when choosing life insurance?
How do I know if my insurance company is financially stable?
Do insurance company ratings change over time?
What happens if my insurance company’s rating gets downgraded?
Conclusion
When it comes to strategic life insurance solutions designed for wealth-building and financial control, the financial strength of your chosen carrier is non-negotiable. At Insurance & Estates, we place our clients exclusively with companies rated “A, Excellent” or above to ensure long-term stability and performance.
The right company not only provides peace of mind through financial security but also offers the policy features necessary for advanced strategies like Infinite Banking, retirement income planning, and business protection solutions.
Our Pro Client Guides are ready to help you navigate these ratings and design a custom policy solution that aligns with your financial goals. Whether you’re looking for high cash value whole life insurance, indexed universal life, or other strategic solutions, we’ll help you select a carrier that combines financial strength with the specific features you need.
Take the next step toward financial independence by scheduling a consultation with our team today.
Ready to Work with Top-Rated Insurance Companies?
Now that you understand how to evaluate insurance company financial strength, let our Pro Client Guides help you select the perfect policy from our network of A-rated carriers. We write all types of life insurance with only the most financially stable companies.
- ✓ Term Life Insurance – Maximum coverage at the lowest cost with A+ rated carriers
- ✓ Whole Life Insurance – Build cash value with guaranteed growth from top mutual companies
- ✓ Universal Life Insurance – Flexible premiums and tax-advantaged growth potential
- ✓ Infinite Banking Strategies – Custom policy design for becoming your own banker
Schedule your complimentary consultation today and discover which A-rated insurance company and policy type best fits your financial goals.
No obligation. No sales pressure. Just expert guidance from Pro Client Guides who specialize in matching you with the strongest, highest-rated insurance companies for your specific needs.
19 comments
FIKERESELASSIE AYELE YISHAW
PLEASE HELP TO THE BEST OF YOUR CAPACITY. I AM LOOKING FOR AN AAA RATED INSURANCE COMPANY WHICH IS WILLING TO INSURE MY LOAN OF $8,000,000.00
FROM UK FOR A COVERAGE PERIOD OF 6 YEARS.
THE LOAN AMOUNT IS $8 million, repayment period is 5 years, grace period is one year.
FIKERESELASSIE AYELE, 00971-589308815, sunrising2017@gmail.com
With best regards,
Insurance&Estates
Hello, you would need to talk with someone the UK unless you have residency/green card, etc., to my knowledge. Thanks for connecting.
Best, Steve Gibbs for I&E
Howard Jacobs
What is the Financial Strength for Southern Oak Insurance Company – home insurance for Florida ?
Insurance&Estates
Hi Howard, thanks for connecting. We really do not focus on homeowners insurance at all – strictly permanent life insurance options done correctly is our mission. I recommend just doing a search on your question or connecting directly with the company.
Best, Steve Gibbs for I&E
C. Hulbert
Trying to verify ratings in a COI a vendor provided. HDI Global Specialty SE.
Producer (Liberty United Insurance Services, Inc. states this company can not meet our $2,000,000 occurrence general liability minimum.
Thoughts?
Insurance&Estates
Hello and thanks for commenting. Good question; however, we really can only offer educational resources in a blog setting and can’t comment on a particular company, product or scenario outside of a thorough consultation with one of our experts. To inquire further, request a quote anywhere on our site and you’ll be directed to the right Pro Client Guide.
Best, Steve Gibbs for I&E
Carlton Crabbe
It would be great to add the largest and strongest life insurance companies outside North America as well, and list those by financial strength rating.
Mark
Any info on the Ohio state life insurance company? Can’t find anything.
Insurance&Estates
Hello Mark, we have articles on both Ohio National and State Life; however, from your question I’m not clear what you’re looking for…
Word to the wise, Ohio National, a historic great mutual life company recently de-mutualized. Strange times.
Best, Steve Gibbs for I&E
Debbie
What do you know about Sentinel life Insurance? I know the ratings are not solid, but they have been in business since 1948. Is it worth the risk?
Insurance&Estates
Hello Debbie, I’m not familiar with that carrier; however, my short answer is there would be no reason to go with a sub par company when there are many top rated carriers to consider.
Best, Steve Gibbs for I&E
Dan G Bennett
Can you give me the ratings for Liberty Mutual Inc. Co.
Insurance&Estates
Dan,
As of this reply, the ratings are as follows:
A.M. Best Co. – ‘A’
Moody’s – ‘A2’
Standard & Poor’s – ‘A’
Please see the company’s website for information on Liberty Mutual’s ratings.
Sincerely,
I&E
Kevin P Donovan
Being a Licensed agent with NYLife I like to educate my clients on another great reason to choose us. You can’t buy a 4 star rating, either you have it or you don’t. It’s akin to a good credit score.
At NYLife we have been around since 1845. We are a mutual company and the largest mutual life insurance company in the USA.
I am very proud that we have the highest rating that a company can get!
Kevin P Donovan
Insurance&Estates
Hello Kevin, thanks for commenting. New York Life is certainly a top company.
Best,
Steve Gibbs for I&E
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give you kuddos on wonderful content and information.
Victor Kizushi
Hi, Is Banner Life/Legal General America not A+ (according to A.M Best)?
Insurance&Estates
Yes, Banner should be on the list with a 94 Comdex ranking.
Trudy Fearon
If Ohio National were currently rated, would it still be in the top 25? This data is old (March 2018). With what is transpiring now with Ohio National, it is doubtful they would be listed in the top 25.