Cigna 2009 Annual Report Download - page 52

32
K. Ratings
CIGNA and certain of its insurance subsidiaries are rated by nationally recognized rating agencies. The significance of individual
ratings varies from agency to agency. However, companies that are assigned ratings at the top end of the range have, in the opinion of
the rating agency, the strongest capacity for repayment of debt or payment of claims, while companies at the bottom end of the range
have the weakest capacity.
Insurance ratings represent the opinions of the rating agencies on the financial strength of a company and its capacity to meet the
obligations of insurance policies. The principal agencies that rate CIGNA’s insurance subsidiaries characterize their insurance rating
scales as follows:
• A.M. Best Company, Inc. (“A.M. Best”), A++ to S (“Superior” to “Suspended”);
• Moody’s Investors Service (“Moody’s”), Aaa to C (“Exceptional” to “Lowest”);
• Standard & Poor’s Corp. (“S&P”), AAA to R (“Extremely Strong” to “Regulatory Action”); and
• Fitch, Inc. (“Fitch”), AAA to D (“Exceptionally Strong” to “Order of Liquidation”).
As of February 25, 2010, the insurance financial strength ratings for CIGNA subsidiaries, CGLIC and Life Insurance Company of
North America (“LINA”) were as follows:
CGLIC LINA
Insurance
Ratings(1)
Insurance
Ratings (1)
A.M. Best.................... A A
(“Excellent,” (“Excellent,”
3
rd of 16) 3rd of 16)
Moody’s...................... A2 A2
(“Good,” (“Good,”
6
th of 21) 6th of 21)
S&P............................. A
(“Strong,” (Not Rated)
6
th of 21)
Fitch ............................ A A
(“Strong,” (“Strong,”
6
th of 24) 6th of 24)
_______________
(1) Includes the rating assigned, the agency’s characterization of the rating and the position of the rating in the agency’s rating scale (e.g., CGLIC’s rating by A.M.
Best is the 3rd highest rating awarded in its scale of 16).