Moody’s Insurance Company Ratings Explained
Moody insurance ratings determine how financially stable a provider is; the higher the score, the more secure the company. Moody’s insurance company ratings are an excellent resource when shopping for insurance coverage.
UPDATED: Jun 28, 2022
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UPDATED: Jun 28, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jun 28, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
UPDATED: Jun 28, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Before purchasing insurance, it is a good idea to check the ratings of the insurance company to find out how it fares. That is where Moody’s insurance company ratings and organizations like it come in, providing you with a simple scale to illustrate how well the company you are interested in is doing. Armed with Moody insurance ratings information, the consumer is able to compare companies, make better-informed decisions, and be prepared for what they are signing themselves up for.
Moody’s Letter Gradations
Aaa | Superior | Companies with this rating are graded as among the most stable financial institutions. |
Aa | Excellent | This grade shows potential for long-term growth, with the potential for an even higher rating. |
A | Good | This rating has room for improvement but is still considered a safe and stable investment. |
Baa | Fair | This rating, while it is still stable, indicates that the company has undergone financial difficulties. Further research is advised before investing or purchasing long-term insurance contracts. |
Ba | Needs Improvement | This rating is given to companies that indicate a strong financial foundation but have suffered monetary setbacks or losses recently. This is probably not a good company for long-term investments, but it is still far from a loss. |
B | Barely acceptable | Companies with this rating are probably not good insurance or investment choices. Wait to find out whether the ratings go up or down in future ratings before investing. |
Caa | Poor | Companies with a Caa rating are going through financial turmoil. Consumers would be best advised to avoid purchasing from these companies until the financial outlook has improved. |
Ca | Exceptionally poor | A company rated as Ca is not a good choice for long or short-term insurance policies. Investors may want to keep an eye on the company to help make future investment decisions, but investing in a Ca rating should only be done if you have reason to believe that the company is about to make a turnaround. |
C | Failing | A company with this rating is probably going through serious financial upheavals. While your policy may still be safe, it would require further research before purchasing, and then only if a market analysis indicates future growth is imminent. |
Numeric Modifiers
Along with each letter grade, a number, 1, 2, or 3, may be appended to the rating. This number is used to “fine-tune” the letter score, providing sub-grades within the grading scale.
Lack of Moody Insurance Ratings
Lack of a Moody’s rating does not mean that the company is insolvent or a poor choice for an investment. What lack of rating indicates is that the company was either unwilling to participate in the rating system, or the necessary information was not available at rating time.
Far from being a bad score, having no score at all simply indicates that the company is either newly purchased or has undergone a restructuring that has not yet made it into the rating system. Additionally, some securities and other investment companies are exempt from the ratings, generally as a result of market or SEC activity.
Moody’s Insurance Company Ratings Change
Ratings can change often. While it is not unusual for a financial company to maintain the same rating for months or even years at a time, the rating is updated regularly. For the consumer, updates in the ratings may only be apparent for companies that are experiencing financial stress or surplus. In the first case, the rating would go down, and in the second, if the rating was not already at the top tier, the rating would go up.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.