Understanding What this Rating Means
An AM Best rating is made of two parts. The Financial Strength Rating (FSR) – represented by a letter and a Financial Size Category (FSC) – represented by roman numerals.
National General Holdings Corp.
- FSR: A-
- FSC: XV
Why this is Important to an Insured.
A FSR of A- indicates that the company has an excellent ability to meet ongoing insurance obligations.
The rating represents a comprehensive analysis consisting of an evaluation of balance sheet strength, operating performance, and business profile.
A++, A+, A, and A- all identify the secure insurance companies. Receiving an A for the company shows they are financially strong and capable of guaranteeing your policy and keeping it secure.
A FSC of XV designates adjusted policyholders’ surplus above $2 billion and is the highest financial rating a company can achieve.
The financial size of an insurance carrier is important because it can instill confidence in the insured that their carrier has sufficient financial capacity to meet their claim obligations.
AM Best's Financial Strength Rating Scale
| Categories | Symbols | Definitions |
|---|---|---|
| Superior | A++, A+ | A superior ability to meet their ongoing insurance obligations. |
| Excellent | A, A- | An excellent ability to meet their ongoing insurance obligations. |
| Good | B++, B+ | A good ability to meet their ongoing insurance obligations. |
| Fair | B, B- | A fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. |
| Marginal | C++, C+ | A marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. |
| Weak | C, C- | A weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. |
| Poor | D, E, F | A poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions. |
AM Best's Financial Size Rating Scale
| Category | Adjusted Policyholder Surplus (in millions) | Category | Adjusted Policyholder Surplus (in millions) |
| I | Less than $1 | IX | $250 – $500 |
| II | $1 – $2 | X | $500 – $750 |
| III | $2 – $5 | XI | $750 – $1,000 |
| IV | $5 – $10 | XII | $1,000 – $1,250 |
| V | $10 – $25 | XIII | $1,250 – $1,500 |
| VI | $25 – $50 | XIV | $1,500 – $2,000 |
| VII | $50 – $100 | XV | $2,000+ |
| VIII | $100 – $250 |
