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
    M    ethod: Institutions are assigned ratings from A+ (best) to E, based on ratios representing liquidity, asset quality, capital, and earnings.

  • 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.






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.