Standard and Poor’s (S&P) Insurance Company Ratings Explained

Unlocking the intricacies of Standard and Poor's (S&P) Insurance Company Ratings. Delve into the rating methodology, key determinants, and industry benchmarks. Make well-informed choices tailored to your insurance requirements, armed with a comprehensive understanding of insurance ratings. Demystify the rating landscape and navigate with confidence through the realm of insurance.

UPDATED: Nov 28, 2023

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UPDATED: Nov 28, 2023Fact Checked

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Dorothea Hudson

Insurance and Finance Writer

Dorothea Hudson has been professionally writing in many spheres since 2013. She has written on entertainment, insurance, finance, travel, technology, AI, renewable energy, crypto, fundraising, and real estate for many websites. Her work has been published for British retailer Marks and Spencer, Kroger Magazine, the Vision Group, and more. Her passions include writing, music, running, travel, te...

Insurance and Finance Writer

Jeffrey Manola

Licensed Insurance Agent

Jeffrey Manola is an experienced life insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for life insurance with the most affordable term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide consumers with t...

Licensed Insurance Agent

UPDATED: Nov 28, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

UPDATED: Nov 28, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Nov 28, 2023Fact Checked

Welcome to our informative guide on Standard and Poor’s (S&P) Insurance Company Ratings Explained. In this article, we will demystify the world of insurance ratings, shedding light on the evaluation process and the factors that influence these ratings.

We’ll explore topics such as the rating methodology, industry benchmarks, and key determinants that play a crucial role in assessing insurance companies. By understanding these key aspects, you can make well-informed decisions when selecting insurance coverage tailored to your unique needs.

Ready to take the next step? Enter your ZIP code below to compare rates from the best insurance providers and secure the coverage that fits your requirements. Empower yourself today and secure the protection you deserve.

Standard and Poor’s Letter Gradations

AAA Superior These are the top rated companies in the financial field. Triple A ratings are viewed as stable and trustworthy.
AA Excellent Companies with a double A rating are stable and have met most of the requirements of a top rating but still have area where some improvement may be necessary.
A Good For consumer purposes, this could be considered an average rating. Dealing with companies of an A or higher rating is usually a safe investment, both in the short and long terms.
BBB Fair This rating, while stable, indicates that the company has undergone financial stresses recently. Before investing, it would be wise to investigate the company further.
BB Needs Improvement This is the middle rating on the Standard and Poor’s rating system. Companies rated higher than BB are usually safe investments, while companies rated lower may be an indication that the company is experiencing some sort of financial difficulty.
B Barely acceptable This rating could be a good sign for investors who are looking for a company about to turn around, but it indicates a company that is not trusted enough for long term insurance policies at the consumer level.
CCC Poor This rating indicates the company is experiencing internal problems or is being affected by external pressures. A CCC rating is not a good choice for purchasing insurance and should only be considered as an investment after careful investigation.
CC Exceptionally poor Severe problems have either occurred or are forecast for the company. A CC rating shows little stability and not much indication of potential future growth without investor intervention.
C Failing Companies rated C may not be insolvent, but they are not on stable financial ground. This rating is the lowest available from Standard and Poor’s rating system, and is generally assigned to companies with uncertain financial futures.

Lack of Ratings

Just because Standard and Poor’s does not have a rating for a particular company does not mean that the company is insolvent or even going through hard financial times. More often than not, a lack of rating means that the company did not submit the necessary information, that there were gaps in the grading criteria, or some other review process has been stalled. Companies which do poorly are not excluded from the ratings, but ratings can only be given to companies that have been fully evaluated.

Ratings Changes

In order to provide you with the most accurate information possible, Standard and Poor’s ratings are updated regularly. Rarely, a company may be downgraded by 2 or more ratings grades, but most companies only vary by one grade over an extended period of time. If you are investigating a company and the ratings have changed, it could indicate that the company is going through changes that left the analysts uncertain about future potential stability.

Frequently Asked Questions

What are Standard and Poor’s insurance company ratings?

Standard and Poor’s provides ratings for insurance companies to help consumers choose the best provider for their needs and avoid potential losses if a company should become insolvent.

How are Standard and Poor’s insurance company ratings determined?

Standard and Poor’s insurance company ratings are designated by a team of financial analysts who look at a range of credit criteria before issuing a rating.

What does it mean if a company doesn’t have a Standard and Poor’s rating?

Just because Standard and Poor’s does not have a rating for a particular company does not mean that the company is insolvent or even going through hard financial times. More often than not, a lack of rating means that the company did not submit the necessary information, that there were gaps in the grading criteria, or some other review process has been stalled.

Can Standard and Poor’s ratings prevent bad things from happening as a result of my insurance choices?

Standard and Poor’s ratings cannot prevent bad things from happening as a result of your insurance choices, but they can at least give you some insight to help make a better, more informed decision.

What do the letter gradations mean in Standard and Poor’s ratings?

The letter gradations in Standard and Poor’s ratings indicate the financial stability of the insurance company. The highest rating is ‘AAA’, and the lowest rating is ‘D’.

How often are Standard and Poor’s insurance company ratings updated?

Standard and Poor’s ratings are updated regularly to provide consumers with the most accurate information possible.

What happens if a company’s Standard and Poor’s rating changes?

If a company’s Standard and Poor’s rating changes, it could indicate that the company is going through changes that left the analysts uncertain about future potential stability.

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Dorothea Hudson

Insurance and Finance Writer

Dorothea Hudson has been professionally writing in many spheres since 2013. She has written on entertainment, insurance, finance, travel, technology, AI, renewable energy, crypto, fundraising, and real estate for many websites. Her work has been published for British retailer Marks and Spencer, Kroger Magazine, the Vision Group, and more. Her passions include writing, music, running, travel, te...

Insurance and Finance Writer

Jeffrey Manola

Licensed Insurance Agent

Jeffrey Manola is an experienced life insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for life insurance with the most affordable term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide consumers with t...

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

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