Called The Big Four, the most popular financial ratings companies in the country are Standard & Poor, Fitch, A.M. Best and Moody. Most annuity companies will be rated according to information produced by one of these four companies. If it doesn’t, you may wish to look elsewhere for your annuity purchase.
The Big Four analyze and research how insurance companies operate. Doing this enables them to assign a risk as to how likely a company is to meet its financial obligation to you. In addition, The Big Four rates insurance companies on how secure they are financially, which matters greatly when you are considering purchasing a life insurance annuity.