How to Find and Compare Highly Rated Annuity Companies

Ratings come from different sources and measure different things

There is no single "highest rated" annuity company because rating agencies measure different qualities and update their scores on different schedules. A.M. Best, Moody's, Standard & Poor's, and Fitch all rate insurance companies (which sell annuities) based on financial strength — their ability to pay claims decades from now. These are not customer satisfaction scores. A company can have an excellent financial strength rating and poor customer service reviews, or vice versa.

Consumer review sites like Trustpilot, Google Reviews, and the Better Business Bureau show what customers actually experienced, but they reflect the people who took time to write reviews — often those who had a strong reaction, good or bad. Neither type of rating tells you whether an annuity is right for your situation.

The rating that matters most depends on what you are trying to learn: whether the company will exist in 30 years, whether their sales process is transparent, or whether their customer service answered your questions quickly.

Key Takeaways

• Financial strength ratings from A.M. Best, Moody's, S&P, and Fitch measure whether a company can pay annuity claims, not customer satisfaction.
• Consumer reviews on Google, Trustpilot, and the BBB show real customer experiences but reflect only people who chose to write reviews.
• A company with a strong financial rating may still have poor customer service, and vice versa.
• You can check financial strength ratings free on each rating agency's website, and consumer reviews on public review platforms.
• The best company for you depends on the annuity type you need, your timeline, and what matters most to you in a provider.

How to read financial strength ratings

A.M. Best uses letter grades: A++ and A+ are the highest, followed by A and A−, then B++, B+, and lower. Most major annuity providers hold A or A+ ratings. You can search by company name on ambest.com for free. The rating reflects the company's reserves, profitability, and ability to pay claims over decades — important because annuities are long-term contracts.

Moody's, Standard & Poor's, and Fitch use different letter scales (Moody's uses Aaa, Aa, A, Baa; S&P and Fitch use AAA, AA, A, BBB). All three can be searched free on their websites. These agencies update ratings when a company's financial condition changes, so a rating from three years ago may no longer be current. Check the date on any rating you find.

A high financial strength rating does not mean low fees, good returns, or transparent pricing. It means the company has money set aside to pay you what the contract promises, even if markets fall or the company faces other losses.

What consumer reviews actually show

Google Reviews, Trustpilot, and BBB profiles for annuity companies often show complaints about sales practices, fee clarity, and how long it took to get answers. These reviews come from real customers, but they skew toward people with strong feelings — those very satisfied or very frustrated. Someone who had a neutral experience rarely writes a review.

When reading reviews, look for patterns rather than single complaints. If ten reviews mention that the company took six weeks to answer a question, that is a real pattern. If one review says that, it may be an outlier. Also note the date: a complaint from 2019 may no longer reflect how the company operates.

The BBB also tracks complaints filed and how the company responded. A company with many complaints but a pattern of resolving them may be more trustworthy than one with few complaints but no response history.

Where to find ratings and reviews

For financial strength ratings, visit the rating agency websites directly: ambest.com (A.M. Best), moodys.com (Moody's), standardandpoors.com (S&P), and fitchratings.com (Fitch). You can search by company name. Some ratings are free; others require a subscription. Most major annuity companies' ratings are available free.

For consumer reviews, search the company name on Google Reviews, Trustpilot.com, and bbb.org. The BBB also shows the company's address, phone number, and complaint history. You can file a complaint with the BBB yourself if you have an issue, and the company has a chance to respond.

You can also check the National Association for Insurance Commissioners (NAIC) database at naic.org, which tracks complaints filed against insurance companies by state. This shows whether a company has a pattern of problems or isolated incidents.

What ratings do not tell you

A high financial strength rating does not mean the annuity contract itself is a good deal for you. Some companies with excellent ratings sell annuities with high fees, complex terms, or returns that lag the market. The rating only confirms the company will be around to pay what you are owed.

Consumer reviews do not tell you whether an annuity is appropriate for your goals. Someone might give a company five stars because they felt heard during the sales process, but the annuity itself might not match what they actually needed. Conversely, a one-star review might come from someone who bought the wrong product and blamed the company.

Neither type of rating accounts for your personal situation: your age, income, risk tolerance, or how long you plan to hold the annuity. A company that is excellent for a 65-year-old buying a fixed annuity might not be the right choice for a 45-year-old considering a variable annuity.

Questions to ask before choosing a company

Beyond ratings, ask the company directly about fees, surrender charges (penalties for withdrawing early), and how returns are calculated. Request a written explanation of the contract in plain language, not just the legal document. A reputable company will provide this without pressure.

Ask how long the company has been in business and whether it has changed ownership. A company acquired by a larger firm may have different customer service standards than before. Ask for references — the company may connect you with existing customers who hold the same type of annuity you are considering.

Check whether the company is licensed in your state. You can verify this on your state insurance commissioner's website. If a company is not licensed where you live, you have fewer protections if something goes wrong.

How ratings change and what to do if one drops

Financial strength ratings can change when a company's financial condition shifts, when it acquires or is acquired by another firm, or when the rating agency updates its methodology. If a company you hold an annuity with receives a downgrade, it does not automatically mean your contract is at risk — the company still has reserves to pay claims. But a significant downgrade (from A+ to B, for example) is worth investigating.

If you are considering buying an annuity and the company's rating drops during your decision period, ask why. A temporary dip due to market conditions is different from a structural problem. The company's investor relations department or your agent can explain what caused the change.

You can also contact your state insurance commissioner's office if you have concerns about a company's financial stability. They monitor insurance companies and can tell you whether there are regulatory actions underway.

Frequently Asked Questions

Can I see all of a company's ratings in one place?

No. Each rating agency publishes on its own website. You will need to check A.M. Best, Moody's, S&P, and Fitch separately. Some financial websites aggregate ratings, but going to the source is more reliable because you see the exact date and any notes the agency included.

What does it mean if a company has no rating?

Smaller or newer insurance companies may not be rated by the major agencies because they do not meet the size threshold or have not been in business long enough. This does not mean they are unsafe — it means less public information is available. Check your state insurance commissioner's database and ask the company for audited financial statements.

Should I only buy from the highest-rated company?

No. A company with an A rating instead of A+ is still financially sound. The difference between A and A+ is often small. Focus on whether the company is rated A or higher, then compare fees, contract terms, and customer service. The best company is the one that offers the annuity type you need at a price you understand.

How often do ratings change?

Financial strength ratings are reviewed regularly, but they do not change every month. Most major companies' ratings are stable for years. You should check ratings when you are first considering a purchase and again before you sign, but you do not need to monitor them constantly once you own an annuity.

Can I complain to the BBB if I have a problem with my annuity?

Yes. You can file a complaint on bbb.org, and the company has a set time to respond. The BBB does not resolve disputes, but a complaint on record can pressure a company to address your issue. You can also file a complaint with your state insurance commissioner, who has more authority to investigate.