What is the A.M. Best rating scale?

The A.M. Best financial strength scale runs from A++ (Superior) down to D (Poor) across thirteen ratings and seven categories. Ratings A++ through B+ are the secure range; B and below are the vulnerable range. The rating is an opinion about an insurer's ability to meet its ongoing insurance obligations — it is not a rating of any individual annuity contract.

No. A- sits inside the Excellent category, one notch below A and two below A+, and well within the secure range. It is a common rating among growth-stage and privately held annuity issuers. The minus is a modifier within the category rather than a separate grade.

What is the difference between A+ and A++?

Both sit in the Superior category, the top of the scale. A++ is the single highest financial strength rating A.M. Best assigns; A+ is the next notch down. In practice the difference between them is far smaller than the difference between a Superior carrier and one in the vulnerable range.

Does an A.M. Best rating guarantee my annuity?

No. The rating is an independent opinion about the insurer's financial strength, not a guarantee, a warranty, or a recommendation. Contract guarantees are backed by the claims-paying ability of the issuing carrier, with the state guaranty association as a statutory backstop after an insolvency.

How often do A.M. Best ratings change?

A.M. Best reviews ratings at least annually and can act at any time on new information. Because ratings move, the rating in force when a contract was issued may differ from today's rating — which is one of the checks a contract review should include.

What does an outlook mean on an A.M. Best rating?

An outlook signals the likely direction of a rating over the medium term, usually twelve to thirty-six months. Positive, Stable, and Negative describe direction only. An outlook does not change the contractual obligations already written into an in-force policy.

Carrier strength · Reference

The A.M. Best rating scale, explained

The A.M. Best financial strength scale runs from A++ down to D across thirteen ratings and seven categories. Ratings A++ through B+ make up the secure range; B and below make up the vulnerable range. A rating is an opinion about the insurer's ability to meet its ongoing insurance obligations — never a rating of an individual annuity contract.

Secure range — A++ through B+

Rating	Category	What it means
A++	Superior	Superior ability to meet ongoing insurance obligations. The highest financial strength rating A.M. Best assigns.
A+	Superior	Superior ability to meet ongoing insurance obligations. Second-highest rating; shares the Superior category with A++.
A	Excellent	Excellent ability to meet ongoing insurance obligations. The most common rating among mid-size and large annuity issuers.
A-	Excellent	Excellent ability to meet ongoing insurance obligations. The minus is a modifier within the Excellent category, not a downgrade out of it.
B++	Good	Good ability to meet ongoing insurance obligations. Still inside the secure range.
B+	Good	Good ability to meet ongoing insurance obligations. The lowest rating A.M. Best treats as secure.

Vulnerable range — B through D

Rating	Category	What it means
B	Fair	Fair ability to meet ongoing insurance obligations. Financial strength is vulnerable to adverse changes in business and economic conditions.
B-	Fair	Fair ability to meet ongoing insurance obligations, with heightened vulnerability to adverse conditions.
C++	Marginal	Marginal ability to meet ongoing insurance obligations.
C+	Marginal	Marginal ability to meet ongoing insurance obligations, with greater exposure to adverse conditions.
C	Weak	Weak ability to meet ongoing insurance obligations.
C-	Weak	Weak ability to meet ongoing insurance obligations, with substantial vulnerability.
D	Poor	Poor ability to meet ongoing insurance obligations. The lowest rating on the financial strength scale.

Reading the modifier

The single most common misreading of the scale is treating a minus as a warning. A- is not a downgraded A; it is the lower of the two ratings inside the Excellent category and sits comfortably in the secure range. The category — Superior, Excellent, Good — carries far more information than the plus or minus attached to it.

The second misreading is treating the rating as static. A.M. Best reviews ratings at least annually and acts on new information at any time. A contract issued eight years ago by an A+ carrier may sit with an A- carrier today, or the reverse. Direction of travel is usually more informative than the current letter.

Finally, a rating is a company-level opinion. It says nothing about the surrender schedule, the rider charge, the participation rate, or the crediting method in your specific contract. Those live in the contract, and they are where most of the differences between two similarly rated carriers actually show up.

Outlooks

Positive

The rating may be raised over the medium term, typically twelve to thirty-six months, if current trends continue.

Stable

The rating is unlikely to change over the medium term. Most ratings carry a stable outlook.

Negative

The rating may be lowered over the medium term if current trends continue. It is a direction, not a downgrade.

Non-rating designations

Code	Designation	Meaning
E	Under Regulatory Supervision	Assigned to a company placed under a significant form of regulatory supervision, control, or restraint.
F	In Liquidation	Assigned to a company placed under a court order of liquidation. This is the point at which a state guaranty association becomes relevant to contract owners.
S	Suspended	Assigned when sudden and significant events make the current rating opinion unreliable pending further review.
NR	Not Rated	The company is not currently rated by A.M. Best. Not a negative opinion — it means no opinion is published.

Where carriers sit today

15 carriers are recorded in the AnnuityScore network with a current A.M. Best rating. Browse them by category:

A++ · A+

Superior

A++ and A+ rated annuity carriers

A · A-

Excellent

A and A- rated annuity carriers

B++ · B+

Good

B++ and B+ rated annuity carriers

Full carrier comparison table Guaranty fund limits by state

Questions owners ask

What is the A.M. Best rating scale?: The A.M. Best financial strength scale runs from A++ (Superior) down to D (Poor) across thirteen ratings and seven categories. Ratings A++ through B+ are the secure range; B and below are the vulnerable range. The rating is an opinion about an insurer's ability to meet its ongoing insurance obligations — it is not a rating of any individual annuity contract.
Is an A- rating bad?: No. A- sits inside the Excellent category, one notch below A and two below A+, and well within the secure range. It is a common rating among growth-stage and privately held annuity issuers. The minus is a modifier within the category rather than a separate grade.
What is the difference between A+ and A++?: Both sit in the Superior category, the top of the scale. A++ is the single highest financial strength rating A.M. Best assigns; A+ is the next notch down. In practice the difference between them is far smaller than the difference between a Superior carrier and one in the vulnerable range.
Does an A.M. Best rating guarantee my annuity?: No. The rating is an independent opinion about the insurer's financial strength, not a guarantee, a warranty, or a recommendation. Contract guarantees are backed by the claims-paying ability of the issuing carrier, with the state guaranty association as a statutory backstop after an insolvency.
How often do A.M. Best ratings change?: A.M. Best reviews ratings at least annually and can act at any time on new information. Because ratings move, the rating in force when a contract was issued may differ from today's rating — which is one of the checks a contract review should include.
What does an outlook mean on an A.M. Best rating?: An outlook signals the likely direction of a rating over the medium term, usually twelve to thirty-six months. Positive, Stable, and Negative describe direction only. An outlook does not change the contractual obligations already written into an in-force policy.

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Educational content only. A.M. Best is the authoritative source for its own ratings, categories, and outlooks; definitions here are summarised for annuity owners and are subject to change. AnnuityScore is not affiliated with or endorsed by A.M. Best. Nothing on this page is a recommendation or a solicitation.