How do you want to get your free life insurance quotes?

Work directly with:
  • Policies Issued by American General
  • 160 years in business, 13 million customers served
  • Over $34 billion in claims and benefits paid
  • Committed to helping you protect your family's future
I want Insure.com to find me the best quote fast:

Answer a few questions,
and then compare multiple quotes
from top providers.

Ask the Life Insurance Expert

What does an insurance company rating of AApi mean?


A number of firms rate insurance companies for financial strength, including A.M. Best, Fitch Ratings, Moody's Investors Service, Weiss Ratings and Standard & Poor's. Checking the financial strength rating is important when evaluating an insurance company, particularly when purchasing life insurance, yet many consumers overlook this step.

Each rating service uses its own grading system, so one firm's B rating may not be the same as another's B. You can find definitions of ratings on each rating agency's website.

Standard & Poor's uses a system from AAA, the highest rating, to CC, for extremely weak, and R, under regulatory supervision because of its financial condition. To grade insurers, S&P analysts examine financial statements and review the company's management team, strategies and risk management ability. They also consider the variety of products the company sells, its financial history, competitive position and economic environment. S&P updates ratings annually, but also conducts discussions with insurance companies each quarter.

An AA rating, the second-highest rating a company can earn through S&P, means analysts think the company has "very strong" financial security characteristics. The "pi" subscript means the rating is based only on an analysis of the company's published financial information and other publicly available data. A "pi" rating does not reflect in-depth discussions with an insurance company's management, so it's based on less thorough information than a rating without a "pi" subscript.

Analysts at S&P review annual financial statements for insurance companies with "pi" ratings, but they also might review financial information more frequently if a major change occurs that could impact the insurance company's financial stability.

You can find more detail about S&P's ratings with Insure.com's Insurance Company Ratings Lookup Tool. To learn more about the ratings process, see how ratings analysts judge insurance companies.



Last updated: Sep. 20, 2011