Annuity Speak

Given today’s global financial instability, it is critical to purchase annuities from insurance companies with very strong balance sheets, ample liquidity and the resources to pay their claims for the foreseeable future.  Additionally, if you are purchasing large amounts of annuities, it may be wise to diversify across borders, as currency fluctuations and other country specific events can impact a given carrier’s financial strength.  Having noted, I offer a sampling of major insured annuity carriers rated A or higher by AM Best Rating Services as of mid-January 2010.  Please independently verify these ratings at any time you may consider contracting with one or more of the below companies.  The rating “A” is considered “Excellent” and “A+” or “A++” is considered “Superior.”  The below list is not all-inclusive, by any means.

AM Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contractual obligations.  It is based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile.  A Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy or contract. 

*- Headquartered in Munich, Germany.

**-Headquartered in London, England