Insurance Companies
Weiss Safety Ratings are similar in purpose to credit ratings. They are designed to help consumers find the best institutions to entrust with their hard-earned money. The higher the rating, the more likely the institution will remain financially stable or strong in good times or bad. The Weiss Ratings of insurers are based upon the annual and quarterly financial statements obtained from state insurance commissioners. The Weiss Ratings are based on a complex analysis of hundreds of factors that are synthesized into a series of indexes: capitalization, investment safety (life, health and annuity companies only), reserve adequacy (property and casualty companies only), profitability, liquidity, and stability. These indexes are then used to arrive at a letter grade rating. A weak score on any one index can result in a low rating, as financial problems can be caused by any one of a number of factors.
Ratings Defintions
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Excellent. Offers excellent financial security. It has maintained a conservative stance in its investment strategies, business operations and underwriting commitments. |
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Good. Offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all of our rating criteria, and is likely to remain healthy for the near future. |
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Fair. Offers fair financial security and is currently stable. But during an economic downturn or other financial pressures, we feel it may encounter difficulties in maintaining its financial stability. |
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Weak. Currently demonstrates, in our opinion, significant weaknesses which could negatively impact policyholders. In an unfavorable economic environment, these weaknesses could be magnified. |
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Very Weak. Currently demonstrates what we consider to be significant weaknesses and has also failed some of the basic tests that we use to identify fiscal stability. It is our opinion that policyholders could incur significant risks. |
