- Guides
- Allstate insurance rating: does it indicate a strong and reliable insurer?
Explore Allstate’s insurance ratings and find out if its strengths can help support your brokerage and client recommendations
One of the crucial skills and duties of a broker is to be familiar with the goings-on in the insurance industry, and that includes knowing which insurers offer the best products for their clients. An insurance company worth looking into is Allstate. As one of the top P&C insurers in the US, casual observers may be quick to point out that Allstate should be on your list of recommended carriers.
However, basing your decision on this alone does not guarantee a good fit for your clients. Allstate insurance reviews like this one go beyond looking at their fiscal performance. Other criteria like Allstate’s insurance ratings and reviews, consumer reports, and customer service ratings give a clearer picture. As we go through these criteria, you’ll find out if this insurer is a fit for your business and your client’s needs.
Agency
Rating for Allstate
Notes
A.M. Best
A+ (Superior)
Indicates superior ability to meet insurance obligations
Fitch
A (Strong)
Shows strong financial security, but more susceptible to adverse business or economic conditions than other highly-rated insurers
Moody’s
A1
In the upper-medium grade range, and is subject to low credit risk
S&P
A+ (Strong)
Shows a strong capacity to meet financial obligations, but is somewhat susceptible to adverse economic conditions
These individual ratings referenced from the four major insurance ratings agencies reflect Allstate’s solid financial footing and ability to honor claims. But keep in mind they have minor differences in their ratings and outlook. Note also that all these ratings agencies refer to these as their Financial Strength Ratings (FSR) except for Fitch, which denotes this their IFS or Insurer Financial Strength.
Allstate Insurance: issuer credit ratings (ICR)
Allstate has very favorable financial strength ratings (FSR) as of this writing. But apart from FSR, it’s important to look at an insurer’s issuer credit ratings. The ICR is a measure of an insurer’s overall creditworthiness, including its ability to meet its financial obligations and debt repayments.
You may come across short-term or long-term issuer credit ratings that are more specific, but typically the ratings agencies mean the overall long-term issue credit ratings when evaluating an insurer’s ICR.
Allstate issuer credit ratings
Agency
Allstate Issuer Credit Rating
Notes
A.M. Best
aa- (operating) a- (parent)
Outlook is stable for all ratings agencies
Fitch
A-
Moody’s
A
S&P
A3
What this means for Allstate is that they have a strong, investment-grade credit profile, although the company has faced some recent downward adjustments. These were a result of company-specific challenges and headwinds for …