There are over 2,000 insurance companies in the United States. Of these, approximately 10 offer long term care insurance. The following is a list of the top 10 long term care insurance companies and their financial strength ratings. A.M. Best, Moody’s, Standard & Poor’s and Fitch are the world’s leading financial rating institutions.
Company | A.M. Best | Moody’s | S&P | Fitch |
|---|---|---|---|---|
A | A1 | A+ | A- | |
A | A2 | A | A- | |
A+ | Aa3 | AA | AA | |
B++ | - | A- | - | |
A+ | Aa3 | AA- | AA- | |
A+ | Aa3 | AA- | - | |
A+ | A+ | AA- | A+ | |
A+ |
| AA- | AA- |
*Company ratings as of August 1, 2010. Subject to change without notice.
**Dash (-) indicates company isn’t rated by the financial rating institution.
What do these ratings means?
A.M. Best Long Term Care Insurance Companies Rating Definition
Ratings: | Description: | Definition: |
|---|---|---|
A++, A+ | Superior | Able to meet insurance obligations. |
A, A- | Excellent | Able to meet insurance obligations. |
B++, B+ | Good | Able to meet insurance obligations. |
B, B- | Fair | Vulnerable to unfavorable economic conditions. |
C++, C+ | Marginal | Vulnerable to unfavorable economic conditions. |
C, C- | Weak | Very vulnerable to unfavorable economic conditions. |
D | Poor | Extremely vulnerable to unfavorable economic conditions. |
E | Under Supervision | Company is under regulation, preventing normal business operations. |
F | In Liquidation | Company is undergoing voluntary liquidation. |
S | Suspended | Unevaluated due to inadequate information or lack of cooperation. |
Moody’s Long Term Care Insurance Companies Rating Definition
Ratings: | Description: | Definition: |
|---|---|---|
AAA | Extremely Strong | Market conditions are unlikely to affect a fundamentally strong position. |
AA | Very Strong | High-grade company with marginally larger long-term risks. |
A | Strong | Financially secure, but signs of possible long-term susceptibility. |
Baa | Adequate | Lacking in certain protective elements over the long term. |
Ba | Questionable | Ability to meet obligations is questionable. |
B | Poor | Long-term ability to meet obligations on time is small. |
Caa | Very Poor | May be in default of financial obligations already. |
Ca | Extremely Poor | In default of financial obligations. |
C | Extremely Poor | Very poorly positioned to offer financial security. |
Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. Numeric modifiers are used to refer to the ranking within a group – with 1 being the highest and 3 being the lowest. However, the financial strength of long term care insurance companies within a generic rating symbol (Aa, for example) is broadly the same.
Standard & Poor’s Long Term Care Insurance Companies Rating Definition
Ratings: | Description: | Definition: |
|---|---|---|
AAA | Extremely Strong | Very unlikely to be affected by adverse economic conditions. |
AA | Very Strong | Unlikely to be affected by adverse economic conditions. |
A | Strong | Marginally more likely to be affected by adverse economic conditions. |
BBB | Good | May be affected by adverse business conditions. |
BB | Marginal | Adverse business conditions may lead to inability to meet obligations. |
B | Weak | Adverse business conditions are likely to affect ability to meet obligations. |
CCC | Very Weak | Depends on favorable business conditions to meet obligations |
CC | Extremely Weak | Likely to not meet all financial obligations. |
R | Regulatory Action | Subject to regulation due to insolvency. |
NR | Not Rated | No opinion. |
Note: Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
Fitch Long Term Care Insurance Carrier Ratings Definition
Ratings: | Description: | Definition: |
|---|---|---|
AAA | Extremely Strong | Very unlikely to be affected by adverse economic conditions. |
AA | Very Strong | Unlikely to be affected by adverse economic conditions. |
A | Strong | Marginally more likely to be affected by adverse economic conditions. |
BBB | Good | May be affected by adverse business conditions. |
BB | Marginal | Adverse business conditions may lead to inability to meet obligations. |
B | Weak | Adverse business conditions are likely to affect ability to meet obligations. |
CCC | Very Weak | Depends on favorable business conditions to meet obligations |
CC | Extremely Weak | Likely to not meet all financial obligations. |
R | Regulatory Action | Subject to regulation due to insolvency. |
NR | Not Rated | No opinion. |
Notes: “+” or “-” may be appended to a rating to indicate the relative position of a credit within the rating category. Such suffixes are not added to ratings in the ‘AAA’ category or to ratings below the ‘B’ category.
For a free, up-to-date report of the best long term care insurance companies, contact a LongTermCareInsure.com licensed professional advisor. Get a long term care insurance quote from the top insurance companies for free.
