Established in 1906, A.M. Best is the oldest independent insurance analyst in the
country. The company assigns a rating to an insurance company based on financial
information (results) and qualitative evaluations (management objectives and strategies).
The quantitative financial evaluation includes an extensive analysis of reported
financial performance in the areas of profitability, leverage and liquidity. The
qualitative evaluation reviews performance in such areas as quality of assets, reserve
adequacy, reinsurance, business strategies, market leadership, parent company support,
and management competency. A+ is the second highest rating assigned by A.M. Best.
For a full description of how A.M. Best rating categories are defined refer to www.AMBest.com.
Standard & Poor's®
A Standard & Poor's Insurer Financial Strength Rating is a current opinion of
the financial security characteristics of an insurance organization with respect
to its ability to pay under its insurance policies and contracts in accordance with
their terms. Insurer Financial Strength Ratings are based on information furnished
by rated organizations (or obtained by Standard & Poor's from other sources
it considers reliable). Insurers rated AA have Very Strong financial security characteristics.
For a full description of how Standard & Poor's® Insurer Financial
Strength Rating categories are assigned refer to www.standardandpoors.com.
Moody's Investor Service
Moody's has been rating insurance companies since 1986. It is one of the two agencies
outside the insurance industry most frequently recognized with respect to financial
ratings. Moody's financial strength rating reflects the insurance company's ability
to fulfill senior policyholder obligations and claims. The analysis focuses on a
company's business fundamentals, including financial factors, franchise value, management
and organizational structure/ownership. In evaluating capital adequacy, Moody's
attempts to assess the capital necessary to absorb a number of risks, including
asset default, pricing adequacy and interest rate risk. Insurers rated A2 offer
good financial security. However, elements may be present which suggest a susceptibility
to impairment sometime in the future.
For a full description of how Moody's rating symbols are defined refer to www.moodys.com.
These independent agency ratings are based on an analysis of financial results and
evaluation of management objectives and strategies. The ratings do not pertain to
investment options, which fluctuate with market conditions. The ratings do not indicate
approval by the analysts and are subject to change.