A financial-strength rating is an outside opinion of whether an insurer can be expected to pay what it owes. It is useful, but it is only one piece of the picture. This page explains how to read one and where to find it.
Independent rating firms study an insurance company's finances and publish an opinion of its ability to meet its obligations to policyholders, such as paying claims. The firm gives a letter grade, and it may also give an outlook (for example, whether it expects the grade to hold). A rating is an opinion, not a guarantee, and not a recommendation to buy from anyone.
Several firms rate insurers, including AM Best, S&P Global Ratings, Moody's, Fitch Ratings and DBRS Morningstar. Each uses its own scale and its own wording, so a grade from one firm cannot be compared directly with a grade from another. Each firm publishes a guide to its own scale. Higher grades generally mean a stronger opinion, but check the firm's own guide.
AdvisorPro does not show ratings. Rating firms own their ratings and update them, so we send you to the source rather than copy a grade that could be out of date.
In Canada, industry-funded organizations exist to protect policyholders if an insurer cannot pay. For home, auto and other general insurance, that is the Property and Casualty Insurance Compensation Corporation (PACICC). For life and health insurance it is Assuris. Both have limits and rules that change, so read what each one says on its own site. Insurers that fail are rare, and this is a safety net, not a reason to skip checking.
No. A rating is an outside opinion of financial strength. It does not decide your claim, which depends on your policy wording and what happened.
Rating firms own and update their ratings, so a copy here could be wrong or out of date. We point to the source instead, and we do not rank or recommend insurers.
Rating is one factor. Cover, wording, service, how you want to buy and your own circumstances matter too. An advisor can talk through the trade-offs.
General information, not advice or a recommendation. Rules differ by province and by insurer, so confirm with your insurer or a licensed advisor. This page was last checked in November 2026.