Print this pageFinancial stability can be independent of size.

Financial Stability Ratings® (FSRs) are a leading indicator of the financial stability of Property and Casualty insurers and Title underwriters. Our rating process provides an objective baseline for assessing solvency based upon changes in financial stability, as manifested in an insurers' balance sheet. FSRs are based upon a series of quantitative ratios and considerations which together comprise our Financial Stability Analysis Model.

A Financial Stability Rating® summarizes our opinion as to the insurer's ability to insulate itself from the business cycle that exists in the general economy as well as the underwriting cycle that exists in the insurance industry. Thus, an FSR summarizes our opinion as to the relative ability of an insurer to survive a downturn in general economic conditions as well as a downturn in the underwriting cycle.

Our Financial Stability Analysis Model is the major component of our Financial Stability Rating® assignment process. Our Financial Stability Analysis Model can be applied to statutory insurance accounting data or data compiled under Generally Accepted Accounting Principles (GAAP).

Our focus is somewhat unique. While we acknowledge and recognize the importance of profitability, we believe that balance sheet strength and financial integrity are the ultimate determinants of the long term financial stability required to honor meritorious claims. Accordingly, while operating profit remains an important element of Financial Stability Ratings®, the ability of an insurer to remain financially stable under a variety of economic stress tests requires a focus on balance sheet integrity.

Financial Stability Ratings® are not an endorsement of any particular insurer or its products. Insureds and agents need to independently evaluate their relationship with a particular insurer as well as the applicability of that insurer's products to the needs of the insured or agent. Financial Stability Ratings® present our opinion of the ability of the insurer to meet its insurance related obligations based upon our assessment of financial information.


Definitions of Financial Stability Ratings®
P&C Insurer Review Process
Title Underwriter Review Process

Captive Review Process
Health Insurance Company Review Process
Self-Funded Entity Review Process
Serious About Solvency – Financial Stability Rating® Survival Rates 1989 through 2004PDF File – a 15-year retrospective review of the accuracy of FSRs
Financial Stability Rating® Notifications
Overview of Comparative Financial Observations (CFOs)
Frequently Asked Questions (FAQs)