Health Insurance Company Ratings Chart

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The quality of coverage an insurance company provides, is not the only factor to take into account when choosing a health plan. The insurance company’s financial strength rating is important as well.

Financial strength ratings reflect a company’s potential for long-term survival. A highly-rated company poses little financial risk to its policyholders. On the other hand, a company with a low rating poses a high threat of financial loss for itself as well as its policyholders.

The aim of the chart below is to help decode what the ratings actually mean.

A.M. Best Rating:
A++ = Superior C++ =Marginal
A+ = Superior C+ =Marginal
A = Excellent C =Weak
A- =Excellent C- = Weak
B++ =Very Good D = Poor
B+ =Very Good E = Under Regulatory Supervision
B =Fair F = In Liquidation
B- =Fair S = Rating Suspended
Not Rated (NR) Ratings are reported to A.M. Best but are not ratings applicable:
NR-1 =Insufficient Data
NR-2 =Insufficient Size and/or Operating Experience
NR-3 = Rating Procedure Inapplicable
NR-4 =Company Request
NR-5 = Not Formally Followed

Fitch Rating:
AAA = Exceptionally Strong BB = Moderately Weak
AA+ = Very Strong BB- = Moderately Weak
AA = Very Strong B+ = Weak
AA- = Very Strong B = Weak
A+ = Strong B- = Weak
A = Strong CCC = Very Weak
A- = Strong CC = Very Weak
BBB+- = Good C = Very Weak
BBB = Good DDD = Distressed
BBB- = Good DD = Distressed
BB+ = Moderately Weak D = Distressed

Moody’s Rating:
Aaa = Exceptional Ba2 = Questionable
Aa1 = Excellent Ba3 = Questionable
Aa2 = Excellent B1 = Poor
Aa3 = Excellent B2 = Poor
A1 = Good B3 = Poor
A2 = Good Caa1 = Very Poor
A3 = Good Caa2 = Very Poor
Baa1 = Adequate Caa3 = Very Poor
Baa1 = Adequate Ca = Extremely Poor
Baa1 = Adequate C = Lowest
Ba1 = Questionable

Standard and Poor’s Rating:
A++ = Superior C++ = Marginal
A+ = Superior C+ = Marginal
A = Excellent C = Weak
A- = Excellent C- = Weak
B++ = Very Good D = Poor
B+ = Very Good E = Under Regulatory Supervision
B = Fair F = In Liquidation
B- = Fair S = Rating Suspended