What are financial ratings?
One way to measure a financial company’s strength is through its financial ratings. These ratings are an independent assessment of an insurer’s ability to meet its long-term obligations and guarantees.
Ratings are awarded by independent ratings agencies, which look at a variety of factors – such as liquidity, business strategy, management, and more.
Because any financial product is only as strong as the company behind it, it’s important to consider an insurer’s financial ratings before you buy a long-term financial product such as an annuity or life insurance.