Ranking insurance firms plays an important role on choosing the most appropriate company for receiving appropriate services especially long term insurances such as life insurances. The proposed model of this paper uses two well-known methods of CAMELS and RBC to rank 18 active private and governmental insurance firms in Iran over the period of 2009-2011. The results of Spearman test imply that there is no meaningful difference between these two methods for year 2010 and year 2011 and according to Freedman test, there is not meaningful difference between these two methods in any three years of 2009, 2010 and 2011. In summary, we can conclude that the results of both methods could be used in practice.

Houshm, Z & Soleymani, Z. (2012). A comparative analysis on ranking insurance firms using RBC and CAMELS.Management Science Letters, 2(7), 2545-2550.

Altman, E. I. (1984). The success of business failure prediction models: An international survey. Journal of Banking and Finance. 8, 171-198.

Ambrose, J. M., & Seward, J. A. (1988). Best's ratings financial ratios and prior probabilities in insolvency prediction. Journal of Risk and Insurance, 55, 229-244.

Ambrose, J. M., & Carroll, A. M. (1994).Using best's ratings in life insurer insolvency prediction. Journal of Risk and Insurance, 61, 317-327.

Avery, R.B., & Berger, A. N. (1991). Risk-based capital and deposit insurance reform. Journal of Banking & Finance, 15(4-5). 847-874.

Browne, M. J., & Hoyt, R. E. (1995). Economic and market predictors of insolvencies in the property-liability insurance industry. Journal of Risk and Insurance, 62, 309-327.

Cooper, E.W. (2009). Monitoring and governance of private banks. The Quarterly Review of Economics and Finance, 49(2), 253-264.

Curry, T.J., Fissel, G.S., & Ramirez, C.D. (2008). The impact of bank supervision on loan growth. The North American Journal of Economics and Finance, 19(2), 113-134

Dincer, H., Gencer, G., Orhan, N., & Sahinbas, K. (2011). A Performance Evaluation of the Turkish Banking Sector after the Global Crisis via CAMELS Ratios. Procedia - Social and Behavioral Sciences, 24, 1530-1545.

Grace, M., Harrington, S., & Klein, R. (1998). A risk-based capital and solvency screening in property-liability insurance: Hypotheses and empirical tests. Journal of Risk and Insurance, 65(2), 213-243.

Grenadier, S.R., & Hall, B.J. (1996). Risk-based capital standards and the riskiness of bank portfolios: Credit and factor risks. Regional Science and Urban Economics, 26(3-4), 433-464.

Hsiao, S.H., & Whang, T. J. (2009). A study of financial insolvency prediction model for life insurers. Expert Systems with Applications, 36(3), 6100-6107.

Lee, S. H., & Urrutia, J. L. (1996). Analysis and prediction of insolvency in the property-liability insurance industry: A comparison of Logit and hazard models. Journal of Risk and Insurance, 63, 121-130.

Sahut, J.M., & Mili, M. (2011). Banking distress in MENA countries and the role of mergers as a strategic policy to resolve distress. Economic Modelling, 28(1-2), 138-146