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Home / Financial Stability Ratings® / Financial Stability Ratings® Definitions

Financial Stability Ratings® Definitions

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.

A'' Financial Stability Rating badge from Demotech, Inc.

A″ (A Double Prime), Unsurpassed

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of A (A Double Prime) possess Unsurpassed financial stability related to maintaining surplus as regards policyholders at an acceptable level. Regardless of the severity of a general economic downturn or a deterioration in the insurance cycle, one hundred percent of the insurers receiving a Financial Stability Rating® of A (A Double Prime) are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment.
A' Financial Stability Rating badge from Demotech, Inc.

A′ (A Prime), Unsurpassed

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of A(A Prime) possess Unsurpassed financial stability related to maintaining surplus as regards policyholders at an acceptable level. Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least ninety-nine percent of all the insurers countrywide receiving a Financial Stability Rating® of A (A Prime) are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment.
A Financial Stability Rating badge from Demotech, Inc.

A, Exceptional

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of A possess Exceptional financial stability related to maintaining surplus as regards policyholders at an acceptable level. Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least ninety-seven percent of all the insurers countrywide receiving a Financial Stability Rating® of A are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment.
Substantial Financial Stability Rating badge from Demotech, Inc.

S, Substantial

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of S possess Substantial financial stability related to maintaining surplus as regards policyholders at an acceptable level. Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least ninety-five percent of all the insurers countrywide receiving a Financial Stability Rating® of S are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment.
M Financial Stability Rating badge from Demotech, Inc.

M, Moderate

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of M possess Moderate financial stability related to maintaining surplus as regards policyholders at an acceptable level. Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least ninety percent of all the insurers countrywide receiving a Financial Stability Rating® of M are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment.
L Financial Stability Rating badge from Demotech, Inc.

L, Licensed

Insurers earning a Financial Stability Rating® of L are Licensed by state regulatory authorities. Our evaluation of their financial stability precludes assignment at a Financial Stability Rating® category referenced above.
NR Not Rated Financial Stability Rating badge from Demotech, Inc.

NR, Not Rated

Insurers that are Not Rated do not currently have a Financial Stability Rating®.
N/A Ineligible Financial Stability Rating badge from Demotech, Inc.

N/A, Ineligible

Insurers with a designation of N/A are ineligible for a Financial Stability Rating® because complete financial data was not available.