Compare insurer financial strength ratings by checking that each agency rated the same legal insurer, assessed the same kind of insurance-strength obligation, and used a scale you can fairly compare. Then read each agency’s own definition, status and rationale rather than translating symbols into a single score. These ratings can inform due diligence, but they do not guarantee a claim payment or tell you whether a policy fits your needs.
Start with the exact insurer named on the policy
Find the legal name of the company that will issue the policy, usually in the application, quote or policy documents. A familiar brand or insurance group may include multiple subsidiaries, and a rating of a parent or another affiliate does not automatically describe the company responsible for your contract. Match the rated entity to the policy issuer before comparing grades.
For each agency, open its disclosure for the rating and confirm the entity name. If the disclosure identifies only a group, parent or similarly named company, do not assume it applies to the policy issuer; check the agency record and insurer documentation for the relationship.
Confirm that the ratings measure the same kind of strength
Look for an insurer financial strength rating (often abbreviated IFSR or FSR) rather than treating every credit rating as interchangeable. S&P Global describes an Insurer Financial Strength Rating as a “forward-looking opinion about an insurance organization’s ability to pay its policies and contracts.” S&P Global Ratings’ description says such ratings may be useful to insurance buyers, risk managers, employee-benefit administrators, brokers and agents.
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- The 2024 ERG guide helps satisfy 49 CFR 172.602 DOT requirement. This requirement states that hazmat shipments be accompanied by emergency response info.
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- 2024 Updates: The Pipeline and Hazardous Materials Safety Administration (PHMSA) released a comprehensive summary of updates. Most significantly a QR code on the back cover that provides access to critical incident reporting information.
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- Specifications: 4" x 5 1/2" Pocketbook Size, English, Spiralbound. Copyright 2024.
Other opinions may assess a holding company’s creditworthiness, a specific bond or another obligation. Those can be relevant to a broader financial review, but their scope is not automatically the same as an insurer financial strength rating. Record the rating type and the obligation it addresses; if they differ, mark the comparison as limited.
Read each symbol on its own agency scale
Do not assume that similar-looking letters or a high grade at one agency mean exactly the same thing at another. Each agency defines its own categories and thresholds. Read the scale definition alongside the symbol, and describe what the agency says that grade means rather than converting it mechanically or averaging ratings.
For example, AM Best’s guide groups its FSRs into seven categories: Superior, Excellent, Good, Fair, Marginal, Weak and Poor. It uses notches within six categories and also lists non-rating designations, including NR and special regulatory-status symbols. A designation is not necessarily an ordinary category grade, so check the guide before interpreting it. AM Best’s rating guide explains its categories and designations.
Fitch’s Rating Definitions dated September 19, 2025 includes a dedicated Insurer Financial Strength section. On Fitch’s published long-term international scale, BBB− and higher are described as secure, while BB+ and lower are described as vulnerable. Those thresholds illustrate Fitch’s own definitions; they are not a universal cross-agency conversion rule.
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Check whether the scale is global or national
A global-scale rating and a national-scale rating are not automatically comparable. A national-scale grade describes relative credit strength among entities in a particular country; it is not simply the same grade calibrated for a smaller market. AM Best’s national-scale methodology describes country-specific mappings from its global scale. The available methodology is labeled a draft, so confirm the agency’s current disclosure before applying a national-scale interpretation to a named insurer. AM Best’s national-scale methodology describes this distinction.
Capture status and date, not just the grade
A rating symbol alone omits information that can change how you read the opinion. For each agency, record the publication or action date and the status shown in the disclosure, including outlook, review or watch notation, modifiers and special designations. Use the agency’s own terms; a watch or review label is not itself a new rating category.
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- Stay up to date with the latest Dangerous Goods lists from the United Nations Recommendations, as well as from other international and national regulations
- This guide helps your company comply with the DOT 49 CFR 172.602 requirement that hazmat shipments be accompanied with emergency response information
- The ERG is the ideal guide to help when responding to transportation emergencies involving hazardous materials
Ratings and their statuses can change. When reviewing an insurer, use the current agency disclosure rather than an old comparison, and note if the dates differ. Ratings issued at materially different times are a less direct comparison than opinions current on similar dates.
Build a comparison that preserves the differences
Use one row per agency. A compact record helps expose mismatches before you draw conclusions:
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- Developed jointly by the US Department of Transportation, Transport Canada, and the Secretariat of Communications and Transportation of Mexico (SCT)
- Used by firefighters, police, and other emergency services personnel, and other first responders.
- It is primarily a guide to aid first responders
- Allows quickly identifying the specific or generic classification of the material(s) involved in the incident.
- Protects yourself and the general public during the initial response phase of an incident.
| What to record | What to check |
|---|---|
| Legal entity | Does the agency name the exact company issuing the policy? |
| Agency and rating type | Is this an insurer financial strength opinion, and what obligation does it address? |
| Scale | Is it global or national? If national, which country? |
| Symbol and category | What does this agency say the symbol means on its own scale? |
| Status and modifiers | What outlook, watch or review notation, modifier or special designation appears? |
| Action date | When did the agency publish or update the opinion? |
| Disclosure and rationale | Where is the agency’s direct disclosure, and what reasons does it give? |
Once the rows are complete, compare the direction and stated rationale of each opinion. If one agency’s view is stronger, weaker or more cautious, report that difference in the agencies’ own terms. If the entities, rating types, scales or dates do not match, flag the limitation instead of presenting the grades as a clean head-to-head result.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why agencies can reach different opinions
Agencies apply their own methodologies and analytical judgments. S&P’s insurer methodology, for example, sets out business-risk and financial-risk assessment steps. Differences in those inputs and how they are assessed help explain why opinions may diverge; they do not establish a universal way to translate one agency’s symbol into another’s. S&P’s insurer methodology describes its analytical framework.
Use ratings as one part of insurer due diligence
AM Best defines an FSR as an independent opinion of an insurer’s financial strength and ability to meet ongoing insurance policy and contract obligations. It also says the rating is not assigned to a specific policy or contract and is not a recommendation to buy, hold or terminate insurance. Its stated limitations include claims-payment procedures, disputes about misrepresentation or fraud, and the suitability of a particular policy. AM Best’s rating guide explains the scope and limitations of the FSR.
For a purchasing or risk decision, consider the rating alongside the policy issuer’s identity, the policy wording and exclusions, applicable regulation and your own coverage needs. A strong financial-strength opinion is evidence about the insurer’s capacity as assessed by that agency—not a promise about the outcome of an individual claim.
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