Insurer Financial Strength Ratings, Part 1
In an industry that looks at the long-term, financial health is important. This is why Standard & Poor’s rates insurance companies. In this Internet age, making sound judgments is more important than ever, many now purchase insurance online. Note that S&P ratings are opinions, not specific to policies, and based only on information from other organizations. Ratings are not endorsements or guarantees.
Before we go into the letter grades, let us look at the ‘pi’ subscript. ‘Pi’ ratings are based on information available to the public and not as in-depth as ratings without it, which were analyzed through more comprehensive information from the management of the insurer.
Letter ratings may be followed by plus or minus signs to show their standing relative to others companies in that category.