Rating Agency

Rating agencies analyze and assess the financial health and quality and of corporations, countries, state and local governments, insurance companies and individual securities. Rating agencies play a critical role in assessing the claims-paying abilities of insurance companies. Three of the well known rating agencies include Standard and Poor’s, Moody’s and Fitch. Rating agency evaluations are based on proprietary research, but many critics argue that this research is not entirely free of conflicts of interest. Rating agencies play a crucial role in financial markets, but they came under intense fire in the wake of the 2008 global financial crisis for not fully recognizing the risks attached to the complex subprime mortgages and derivatives.

A.M. Best

Short Company Name: 
A.M. Best
Long Company Name: 
A.M. Best Company, Inc.

Company Type: 
Rating Agency
Address
Street Address: 
Ambest Road
State: 
NJ
ZIP Code: 
8858
Country: 
USA
Phone Number: 
908-439-2200
Year Founded: 
1899

A.M. Best Report Suggests Light at the End of the Tunnel for Life and Annuity Companies

Insurance Company rating agency A.M. Best released a report on the state of the industry for life and annuity insurance companies. The report is somewhat optimistic given the carnage the industry has experienced over the past year or so. The industry as a whole managed to eke out a small amount of net income --$91.5 million--for 2008. However, capital losses for 2008 reached $19.6 billion. Companies such as Allstate Corporation and The Hartford Financial Services have been hit hardest. However...
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A.M. Best Downgrades 64 Insurance Companies, Considers 3 Impaired

Rating agency A.M. Best has recently issued a report indicating that three insurance companies have become financially impaired thus far in 2009. A.M. Best considers an insurance company impaired once a state department of insurance has taken its first official regulatory action against the company. The three carriers considered impaired are: Shenandoah Life Insurance Company American Network Insurance Company Penn Treaty Network America Insurance Company A.M. Best indicated that more impaired...
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Moody's Optimistic on Life and Annuity Insurers

Rating agency Moody's released a brief that expresses a bit of optimism regarding life and annuity insurance companies: "Even if markets turn sour again, life insurers and reinsurers are considered to be fit enough to weather the financial and economic crisis because of their solid balance sheets..." While Moody's indicated that additional ratings downgrades may result if market conditions worsen, their own stress tests indicate that companies should be able to maintain their investment...
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