Am Best Ratings: What It Means and Why It Matters Explained Clear
Few things matter more when buying insurance than knowing the company will actually pay a claim, and AM Best ratings have been the go‑to measure of insurer financial strength since 1899. By the end of this guide, you’ll know what the letter grades mean, which insurers hold the top marks, and how to compare AM Best with other rating agencies like S&P and Moody’s.
AM Best rating scale range: A++ (Superior) to D (Poor) · Number of rated insurance companies: over 16,000 · Founded: 1899 · Headquarters: Oldwick, New Jersey · Specialty: Insurance industry credit ratings
Quick snapshot
- Founded in 1899, AM Best is the oldest dedicated insurance rating agency (ImmediateAnnuities (historical record))
- Scale ranges from A++ (Superior) to F (In Liquidation) (NAIC Center for Insurance Policy and Research (rating scale))
- New York Life holds an A++ (Superior) rating from AM Best (New York Life (rating display))
- Exact number of companies with A++ at any moment changes quarterly (Insurance Information Institute (rating dynamics))
- Specific criteria for each rating notch beyond general public descriptions (United Policyholders (consumer guidance))
- First reported on insurer financial condition in 1899 (United Policyholders (historical reference))
- Alphabetic scale introduced in 1976 (Investopedia (rating history))
- Free basic ratings search at ratings.ambest.com (United Policyholders (consumer guidance))
- Detailed reports require subscription (Insurance Information Institute (report access))
| Attribute | Value |
|---|---|
| Full name | AM Best Company, Inc. |
| Headquarters | Oldwick, New Jersey, USA |
| Year founded | 1899 |
| CEO | Larry Mayewski (as of latest available data) |
| Number of rated entities | Over 16,000 |
| Primary focus | Insurance industry credit ratings |
What is a good AM Best rating to have?
Understanding the AM Best rating scale
AM Best’s Financial Strength Rating is an opinion of an insurer’s ability to meet its ongoing insurance policy and contract obligations, according to New York Life (New York Life (rating definitions)). The scale uses letter grades from A++ (Superior) down to F (In Liquidation). The National Association of Insurance Commissioners (NAIC) notes that AM Best is the only major rating agency focused exclusively on the insurance industry (NAIC Center for Insurance Policy and Research (industry analysis)).
- A++, A+ = Superior
- A, A− = Excellent
- B++, B+ = Good
- B, B− = Fair
- C++, C+ = Marginal
- C, C− = Weak
- D = Poor
What ratings are considered secure?
Ratings of B+ (Good) or higher are classified as “secure” by AM Best. Anything below B+ falls into the “vulnerable” category. The Insurance Information Institute recommends checking ratings from at least two different agencies, since scales vary (Insurance Information Institute (consumer guidance)).
A consumer looking for a safe bet should target at least a B++ rating from AM Best, but A or above gives a much wider margin of safety — especially after a major catastrophe.
The implication: sticking with a B++ or higher rating reduces the chance of claim denial, but higher ratings offer more resilience.
What is Nationwide's credit rating?
How to look up a company's AM Best rating
You can search for any insurer’s rating free of charge at ratings.ambest.com. Just type the company name or NAIC number. For more detail — including the full rating report — you’ll need a subscription. United Policyholders advises getting the rating directly from the agency, not from the insurer’s own marketing materials (United Policyholders (consumer tips)).
Example: Nationwide’s rating
Nationwide holds an A+ (Superior) rating from AM Best, which is the second‑highest tier on the scale. For comparison, Prudential Insurance Company of America reports an A+ from AM Best, AA− from S&P, Aa3 from Moody’s, and AA− from Fitch as of May 5, 2026 (Prudential Financial Investor Relations (rating table)).
Who are the big 3 rating agencies?
S&P, Moody's, and Fitch
The “Big Three” credit rating agencies are S&P Global, Moody’s, and Fitch. They cover everything from sovereign debt to corporate bonds. S&P has been issuing insurer financial strength ratings since 1971 (Investopedia (S&P rating history)). Each uses its own scale: S&P’s top mark is AAA, Moody’s is Aaa, and Fitch is AAA.
How AM Best fits in
AM Best is the specialist. While the Big Three serve many sectors, AM Best focuses solely on insurance. The NAIC confirms that AM Best is the only major agency exclusively dedicated to the insurance industry (NAIC Center for Insurance Policy and Research (comparison)).
“The Insurance Information Institute recommends reviewing an insurer’s ratings from at least two different agencies, since agencies often disagree and rating changes can occur at any time.”
Because AM Best lives and breathes insurance data, its ratings often capture industry‑specific risks — like reserve adequacy and reinsurance quality — that generalist agencies may treat as secondary.
Which rating is better, AA+ or AAA?
Understanding credit rating scales
AAA is the highest rating on the S&P and Fitch scales, indicating exceptional creditworthiness. AA+ sits one notch below. On AM Best’s scale, the top mark is A++ (Superior). The Insurance Information Institute points out that an A+ from AM Best is its second‑highest out of 15 categories, whereas the same symbol from S&P is fifth‑highest out of 19 (Insurance Information Institute (scale comparison)). Moody’s scale doesn’t even include an A+ symbol.
AA+ vs AAA: differences
AAA is clearly better than AA+, but both are considered extremely strong. For insurers, a AAA from S&P is the gold standard; AA+ is still top‑tier. New York Life, for example, holds an AA+ from S&P and an A++ from AM Best (New York Life (rating listing)).
Six major agencies, one key takeaway: the scales are not interchangeable. The following table maps the top tiers across agencies.
| Rating level | AM Best | S&P | Moody’s | Fitch |
|---|---|---|---|---|
| Highest | A++ (Superior) | AAA (Extremely Strong) | Aaa (Exceptional) | AAA (Exceptionally Strong) |
| Second | A+ (Superior) | AA+ (Very Strong) | Aa1 (Excellent) | AA+ (Very Strong) |
| Third | A (Excellent) | AA (Very Strong) | Aa2 (Excellent) | AA (Very Strong) |
| Fourth | A− (Excellent) | AA− (Very Strong) | Aa3 (Excellent) | AA− (Very Strong) |
| Fifth | B++ (Good) | A+ (Strong) | A1 (Good) | A+ (Strong) |
The pattern: AM Best uses a narrower top band — A++ and A+ both mean “Superior” — while the Big Three differentiate more finely at the top.
What insurance companies have an A++ rating?
List of insurers with A++
Very few insurers hold the top A++ mark. Among those that do, New York Life is a prominent example. As of mid‑2025 it carries A++ from AM Best, AAA from Fitch, Aaa from Moody’s, and AA+ from S&P (New York Life (rating display)).
How to find current A++ rated companies
The definitive source is AM Best’s own website. Use the free search tool at ratings.ambest.com and filter by rating. Note that the list changes quarterly, so check the most recent data.
For consumers targeting maximum safety, an A++ rated insurer like New York Life offers the strongest claim‑paying confidence, but A+ is also sufficient for most standard policies.
What's clear and what's not
Confirmed facts
- AM Best was founded in 1899. (ImmediateAnnuities (historical record))
- Rating scale ranges from A++ (Superior) to D (Poor). (NAIC Center for Insurance Policy and Research (rating scale))
- A++ and A+ represent Superior financial strength. (Insurance Information Institute (rating definitions))
- Nationwide has an A+ rating from AM Best. (New York Life (rating data))
What's unclear
- Exact number of companies with A++ at any moment changes quarterly. (Insurance Information Institute (rating dynamics))
- Specific criteria for each rating notch beyond general public descriptions. (United Policyholders (criteria note))
investors.corebridgefinancial.com, immediateannuities.com, casact.org, spglobal.com, ratings.ambest.com
Frequently asked questions
How often does AM Best update its ratings?
AM Best reviews ratings at least annually and also on a quarterly basis. The monitoring is ongoing, and changes can happen at any time when new information emerges (Insurance Information Institute (review schedule)).
Can an insurance company request a rating review?
Yes, insurers can request a review. AM Best then evaluates the company’s financials and may issue a new rating or affirm the existing one.
What does a 'negative outlook' mean on an AM Best rating?
A negative outlook signals that the rating could be downgraded in the next one to two years if certain negative trends continue. It’s a warning to policyholders and investors.
How do I find the AM Best rating for my car insurance company?
Go to ratings.ambest.com and type in the company name. You’ll see the current Financial Strength Rating for free. For deeper detail, a subscription is required.
Is an A rating from AM Best considered good?
Yes, an A (Excellent) rating is well above the secure threshold. It indicates a very strong ability to meet policyholder obligations.
What is the difference between a financial strength rating and an issuer credit rating?
The Financial Strength Rating (FSR) focuses on the insurer’s ability to pay claims. The Issuer Credit Rating (ICR) evaluates the overall creditworthiness of the company itself. AM Best assigns both.
Do all insurance companies have an AM Best rating?
Not all. Some smaller or newer companies do not request a rating. However, most major insurers — especially those selling life, health, and property coverage — are rated.
For consumers, the choice is straightforward: a company rated A or above by AM Best is almost certainly safe for standard policies. But for large or long‑term commitments — like a life insurance policy you’ll hold for decades — cross‑checking with S&P, Moody’s, or Fitch adds an extra layer of confidence. For the agent or analyst, the lesson is even sharper: no single rating tells the whole story. Use AM Best’s insurance‑specific lens alongside the broader view of the Big Three.
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