Rating classes of insurers specialized in life insurance

Rating classes of insurance companies

Rating class clearly determines financial status of an insurer and his quality of managing insurance and investment risks. Depending on credibility level, insurance companies are broken into five classes: A, B, C, D and E. Classes А, В and С are broken into several subclasses depending on their solvency, financial stability and expectations for the future. As a result an insurance company may be rated from А++ to E.

Class А

Class А++. Extremely high credibility level

In short-term perspective company with extremely high probability will secure timely fulfillment of all financial obligations, both current and on-going. In mid-term perspective probability of fulfillment of obligations is high even in case of sufficient unfavorable changes of macro-economic and market indicators.

Class А+. Very high credibility level

In short-term perspective company with high degree of probability will secure timely fulfillment of all financial obligations, both current and on-going. In mid-term perspective probability of fulfillment of obligations is high under conditions of stability of macro-economic and market indicators.

Class А. High credibility level

In short-term perspective company with high degree of probability will secure timely fulfillment of all financial obligations, both current and on-going. In mid-term perspective probability of fulfillment of obligations, requiring significant payments, is dependent of macro-economic and market indicators.

Class B

Class В++. Acceptable credibility level

In short-term perspective company with high degree of probability will secure timely fulfillment of all current financial obligations, as well as small and average (size) on-going obligations. Financial difficulties may arise with small degree of probability in case of circumstances requiring sufficient payments. In mid-term perspective probability of non-fulfillment of obligations is dependent on stability of macro-economic and market indicators.

Class В+. Sufficient credibility level

In short-term perspective company with high degree of probability will secure timely fulfillment of all current financial obligations as well as small and average (size) new on-going insurance activity obligations. Financial difficulties considering current financial flows are probable in case of circumstances requiring sufficient payments. In mid-term perspective probability of non-fulfillment of obligations is largely dependent on stability of macro-economic and market indicators.

Class В. Satisfactory credibility level

In short-term perspective company with high degree of probability will secure timely fulfillment of almost all current financial obligations. The company with average degree of probability may not fulfill its on-going financial obligations. In mid-term perspective non-fulfillment of obligations is largely dependent on stability of macro-economic and market indicators.

Class C

Class С++. Low credibility level

Company timely fulfills almost all current financial obligations, but difficulties may arise in the process of fulfilling relatively large obligations. The company with high degree of probability may not fulfill its on-going financial obligations. In mid-term perspective in case of worsening macro-economic indicators or unfavorable market set-up non-fulfillment of obligations is highly probable.

Class С+. Very low credibility level

Company timely fulfills majority of its financial obligations, but difficulties may arise in the process of fulfilling relatively big or even average size obligations. The company with high degree of probability may not fulfill its on-going financial obligations. In mid-term perspective in case of worsening macro-economic indicators or unfavorable market set-up non-fulfillment of obligations is highly probable.

Class С. Unsatisfactory credibility level (pre-default)

Company does not secure timely fulfillment of current financial obligations, or with high degree of probability it may not fulfill its on-going financial obligations even under favorable market conditions.

Class D

Class D. Technical default

Company does not secure fulfillment of its commitments to clients, partners, creditors and employees.

Class E

Class E. Bankruptcy. License revocation or liquidation

Company is in the process of bankruptcy, or market regulator or any other responsible body is liquidating the company or has announced revocation of its license.