Understanding Ratings
Insurance FSR
The Kroll Bond Rating Agency (KBRA) insurance financial strength rating (IFSR) applies only to insurance operating companies. The IFSR is a measure of the overall financial condition of an insurance operating company with respect to its ability to meet its policyholder obligations. The ratings assigned to insurance holding companies and their obligations are reflected on KBRA's long-term credit scale.
A downloadable version of our Rating Scales and Services can be accessed here.
| AAA | The insurer's financial condition is extremely strong and there is almost no risk of the entity not meeting its policyholder obligations. |
| AA | The insurer's financial condition is very strong and the entity is highly likely to meet its policyholder obligations under severe economic, financial, and business conditions. |
| A | The insurer's financial condition is strong and the entity is very likely to meet its policyholder obligations under difficult economic, financial, and business conditions. |
| BBB | The insurer's financial condition is good and the entity is likely to meet its policyholder obligations, though it may be more susceptible to difficult economic, financial, and business conditions than more highly rated entities. |
| BB | The insurer's financial condition is moderately weak and is susceptible to changes in economic, financial, and business conditions that could affect the entity's ability to meet its policyholder obligations. |
| B | The insurer's financial condition is weak and is highly susceptible to changes in economic, financial, and business conditions that could affect the entity's ability to meet its policyholder obligations. |
| CCC | The insurer's financial condition is very weak and changes in economic, financial, and business conditions are likely to affect the entity's ability to meet its policyholder obligations. |
| CC | The insurer's financial condition is poor and changes in economic, financial, and business conditions are highly likely to affect the entity's ability to meet its policyholder obligations. |
| C | The insurer's financial condition is very poor and changes in economic, financial, and business conditions will affect the entity's ability to meet its policyholder obligations. |
| D | KBRA defines the default of an insurance operating company as occurring if the rated entity fails to meet its policyholder obligations. |
| R | Due to its financial condition, the insurance operating company is under regulatory supervision. |
KBRA may append - or + modifiers to ratings in categories AA through CCC to indicate, respectively, upper and lower risk levels within the broader category.