Ratings – How Strong Is

Even though states evaluate the financial strength of annuity carriers, and FDIC evaluates the wherewithal of banks, neither releases ratings on financial soundness. However, independent rating services do evaluate both banks and carriers and issue ratings.  

How Strong Is The Bank?
These private services provide a letter or number grade designed to rate institutional financial strength.

BauerFinancial, Inc.             www.bauerfinancial.com         800-388-6686
Method:  Ratings are based on a 5-star scale (5-stars being the highest and 0-stars the lowest)

IDC Financial Publishing             www.idcfp.com         800-525-5457
Method:  Rates institutions on a scale of 300 (best) to 1, based on financial statistics and ratios. IDC calculates over 35 key financial ratios and provides a one number summary rating. Reports also include one line summaries of financial statistics and ratios for each institution and peer group distributions.

LACE Financial Corp.               www.lacefinancial.com        301-662-1011
Method:  Institutions are assigned ratings from A+ (best) to E, based on ratios representing liquidity, asset quality, capital, and earnings.

Sheshunoff Information Services                      www.sheshunoff.com              800-456-2340
Method:  Rates banks on a scale of 99 (best) to 0. Ratings are based on financial statistics and comparisons to peer institutions.

Veribanc                     www.veribanc.com                  800-837-4226
Method:  Ratings consist of a green, yellow, or red code and three (high) to zero stars. Blue Ribbon represents a special commendation for excellence. Ratings are based on actuarial studies of bank failures and is not a peer group comparisons.

Weiss Ratings Inc.                www.weissratings.com             800-289-9222
Method:  Rates institutions on a scale of A+ (Excellent) to E -(Very Weak) and identifies the safest institutions within each state.

How Strong Is The Insurance Carrier
These private rating agencies evaluate the ability of insurers to meet their obligations.

A.M. Best Company    www.ambest.com   is the leading provider of ratings for the insurance industry.

The Fitch Ratings Insurance Group    www.fitchibca.com   provides ratings and research on insurance companies worldwide.

Moody’s    www.moodys.com   provides financial strength ratings for life insurance companies.

Standard & Poor’s       www.sandp.com   provides ratings and research on insurance companies.

Weiss Ratings      www.weissratings.com   tracks the financial safety of insurance companies each quarter and issues