Credit rating agency Standard & Poor’s recently downgraded the financial strength ratings of 10 major life insurers, and reaffirmed the rating on 1 (see table below). Here is the list of recent S&P® ratings actions, listed in order of financial security:
|
Company
(by financial security according to S&P®)
|
Action |
Current Rating |
Financial Security Definition |
| Ohio National Financial Services |
Reaffirm |
AA |
“Very Strong, differing only slightly from those rated Extremely Strong” (click here for details) |
| Lincoln: |
Downgrade |
AA- |
“Very Strong (−), differing only slightly from those rated Extremely Strong” |
| MetLife |
Downgrade |
AA- |
“Very Strong (−), differing only slightly from those rated Extremely Strong” |
| Pacific Life |
Downgrade |
AA- |
“Very Strong (−), differing only slightly from those rated Extremely Strong” |
| Protective |
Downgrade |
AA- |
“Very Strong (−), differing only slightly from those rated Extremely Strong” |
| Prudential |
Downgrade |
AA- |
“Very Strong (−), differing only slightly from those rated Extremely Strong” |
| The Hartford |
Downgrade |
A+ |
“Strong (+), but somewhat more likely to be affected by adverse business conditions” |
| Midland |
Downgrade |
A+ |
“Strong (+), but somewhat more likely to be affected by adverse business conditions” |
| Genworth |
Downgrade |
A |
“Strong, but somewhat more likely to be affected by adverse business conditions” |
| Security Mutual Life |
Downgrade |
A- |
“Strong (-), but somewhat more likely to be affected by adverse business conditions” |
| Conseco |
Downgrade |
BB- |
“Marginal (−). Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments.” |
What does this mean?
As you can see from the above table, Ohio National has the highest financial strength rating of those in the group, and its rating has not been downgraded. The others rated “Very Strong,” while still receiving a downgrade, still retain high ratings. If you currently own an annuity, or plan on investing in one, be aware of the most recent financial strength ratings before you invest.
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