Understanding A++ Insurance Carriers and Why Ratings Matter

When you’re evaluating insurance products—especially those designed for long-term guarantees—one of the most important factors to consider is the financial strength of the company standing behind your policy. This is where financial strength ratings come in, and among the highest marks in the industry is the A++ rating.

What Does an A++ Rating Mean?

A++ is the highest possible rating awarded by AM Best, a leading independent rating agency that evaluates the financial strength, claims-paying ability, and long-term stability of insurance companies. An A++ carrier is considered “Superior,” meaning it has exceptional financial resilience and is highly capable of meeting its obligations far into the future.

Why A++ Ratings Matter for Long-Term Guarantees

Insurance products often span decades—sometimes an entire lifetime. Whether it's life insurance, disability insurance, long-term care coverage, or annuity-backed guarantees, the carrier must remain financially sound throughout your retirement and beyond. An A++ rating offers added confidence that the insurer has:

• Strong capitalization and cash reserves
• A long history of stable performance
• A conservative investment philosophy
• Excellent claims-paying reliability
• Robust risk management practices

In practical terms, choosing A++ insurance carriers means choosing partners that are far more likely to deliver every promise made in your contract—especially during economic downturns.

How to Evaluate Carrier Quality

While ratings are a good start, a complete evaluation should consider:

• Ratings from multiple agencies (AM Best, Moody’s, S&P, Fitch)
• Longevity and history of the company
• Type and performance of investment portfolios
• Product design and guarantees offered
• Customer service and claims track record
• Independent advisory recommendations

For a deeper look at how different insurance solutions fit into a secure long-term strategy, explore our pages on Insurance Solutions and Life Insurance Planning.

FAQs About Financial Strength Ratings

1. Who assigns financial strength ratings?

Independent agencies such as AM Best, Moody’s, Fitch, and Standard & Poor’s assess insurers based on financial stability and claims-paying ability.

2. Is an A++ rating the same as an A+?

No. A++ is a higher rating than A+. Both are strong, but A++ represents the “Superior” category—AM Best’s highest level.

3. Do ratings ever change?

Yes. Agencies regularly re-evaluate carriers based on performance, reserves, investment results, and market conditions.

4. Should I only choose A++ insurance carriers?

Not necessarily. Many A+ carriers also offer excellent stability. A licensed advisor can help compare ratings alongside product needs and planning objectives.

5. How can I verify a carrier’s rating?

You can check directly on AM Best’s website, review the insurer’s disclosures, or ask your advisor for a current rating report.

If you’re evaluating policies or considering new coverage, feel free to reach out through our Contact Us page.

Ready to take the next step? Schedule an insurance needs assessment with MWI Agency today to make confident, well-informed decisions about protecting your long-term future.