Are you asking from the perspective of a current or prospective policyholder?

If so, what type of policy--annuity, life or disability?  They are also very active in asset management arena with Seligman acquisition.  Please clarify which area is the base of your inquiry.

Their ratings, as you indicate, are OK: A+ AM Best, AA- Fitch, Aa3 Moody's, AA- S&P.

"What happens to my annuity if my insurance company fails" is a natural and very common question in light of the financial crisis.

Many people who have or are considering annuities are concerned about credit risk.  In other words, there are concerned about will happen to their annuity if the insurance company that provided the product goes out of business.

There has been a ton of recent discussion in the press about the financial health of life and annuity insurance companies.  In particular, there has been discussion surrounding the health of insurance companies that have provided living benefit guarantees that accompany variable annuities.

It is perfectly reasonable to be concerned about the ability of insurers to make good on their financial commitments.  With annuities, many of the contracts are long-term and involve large amounts of money that represent a significant portion of the policuholder's net worth.