Comdex Score Explained for Annuity Buyers
Comdex is a 0-100 composite score that consolidates AM Best, S&P, Moody, and Fitch ratings into a single number. It is the most efficient single metric for comparing carriers. 90+ is top tier (top decile of carriers), 80-89 is solid, 70-79 is acceptable for small amounts, and below 70 signals that at least one major rating agency has a material concern.
The short answer
Comdex is calculated by EbixExchange (an industry data provider). It percentile-ranks each carrier against all other carriers rated by AM Best, S&P, Moody, and Fitch, then averages those percentile ranks into a 0-100 score.
A Comdex of 90 means the carrier is in the top 10% of all rated carriers when ratings are averaged across agencies. A Comdex of 70 means top 30%, and so on.
Buyer thresholds:
- 90-100 = Top tier. Suitable for any amount.
- 80-89 = Solid. Suitable for amounts at or below state guaranty cap.
- 70-79 = Acceptable for small amounts with strong rationale.
- Below 70 = At least one agency has a concern. Avoid for serious money.
Why this matters
Single-agency ratings can mislead. A carrier might have an A from AM Best but an A- from S&P and a Baa1 from Moody. The single-letter view obscures the disagreement; the Comdex view captures it.
Comdex is also rare in being available only from one source per carrier. There is no “ten different Comdex scores” problem. The number is the number.
Comdex vs. individual ratings — translation
| Comdex | Typical AM Best | Typical S&P | Typical Moody | Read |
|---|---|---|---|---|
| 95-100 | A++ / A+ | AA+ / AA | Aa1 / Aa2 | Top of the market |
| 85-94 | A+ / A | AA- / A+ | Aa3 / A1 | Strong |
| 75-84 | A / A- | A / A- | A2 / A3 | Acceptable |
| 65-74 | A- / B++ | A- / BBB+ | A3 / Baa1 | Marginal |
| Below 65 | B++ or lower | BBB or lower | Baa2 or lower | Caution warranted |
These are typical ranges. Individual carrier scores can land outside the typical band if one agency disagrees materially with the others.
Worked example
Two MYGAs with identical 5.7% rates over a 5-year term:
- Carrier A: AM Best A, S&P A-, Moody A3, Fitch A. Comdex 82.
- Carrier B: AM Best A, S&P BBB+, Moody Baa1, Fitch not rated. Comdex 68.
Both carry AM Best A. The single-agency view says they are equivalent. The Comdex view shows Carrier A is materially stronger across the credit committee. For a $200K MYGA, both are within most state guaranty caps and both are workable. For a $500K MYGA, Carrier A is the clear choice; Carrier B 14-point lower Comdex represents a real concern from non-AM Best agencies.
How to actually pull a Comdex
- Comdex is not free to retail buyers. The score is licensed through carrier marketing, broker-dealer platforms, and producer tools.
- Ask any independent producer to pull the Comdex on any carrier you are considering. They have direct access via their carrier marketing portals.
- Free workaround: pull the four underlying ratings (AM Best, S&P, Moody, Fitch) from each agency website and approximate the Comdex using the translation table above.
- For carriers with fewer than two ratings, Comdex may not be calculated. Use single-agency ratings with extra caution.
Common misconceptions
“Comdex is a rating.” No. Comdex is a composite ranking based on ratings from four agencies. It is calculated, not assigned.
“Higher Comdex = better yields.” Often the opposite. High-Comdex carriers (95+) frequently offer below-market MYGA rates because their distribution costs are lower and their capital is more conservative.
“You cannot trust a carrier without a Comdex.” Some smaller carriers do not have ratings from all four agencies. Comdex may be calculated on fewer inputs or not at all. Use AM Best plus one other agency at minimum.
When the answer changes
- For purchases above $500K: Require Comdex 90+.
- For purchases within state cap: Comdex 80+ is the practical floor.
- For a higher-yielding contract with Comdex 75-79: Acceptable for smaller amounts, but understand the trade-off.
- For Comdex below 70: Even within the state cap, the wait time for guaranty fund resolution in a failure makes this rarely worth the yield pickup.
Frequently Asked Questions
Related reading
- AM Best Rating Explained
- How to vet an annuity carrier
- Should I trust a B++ rated carrier
- PE-owned carriers safety concerns
- Is a MYGA safer than a CD
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Disclosure
This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Rates, ratings, state guaranty caps, FDIC rules, and tax treatment change frequently. Always confirm current values against the most recent carrier or bank disclosure documents and the actual contract before purchasing. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers. The producer specific appointment status with any carrier discussed may vary, and this article is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier or bank in connection with the publication of this article. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or other financial product. Past performance does not predict future returns. AM Best ratings, Comdex scores, and tax treatment are subject to change. Historical bank and insurance failure outcomes described herein are based on publicly available regulatory and news sources and may include minor inaccuracies; do not rely on this article as a primary source.