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Business Wire
a day ago
- Business
- Business Wire
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Certain Members of Health Care Service Corp Medicare & Supplemental Group Members
BUSINESS WIRE)-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a' (Excellent) of select members of Health Care Service Corp Medicare & Supplemental Group (HCSC Medicare & Supplemental Group) (Chicago, IL). At the same time, AM Best has removed from under review with developing implications and downgraded the Long-Term ICRs to 'a' (Excellent) from 'a+' (Excellent) and affirmed the FSRs of A (Excellent) of certain members of HCSC Medicare & Supplemental Group. The outlook assigned to all these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of companies and ratings.) The rating actions follow the completion of the acquisition by the parent organization, Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC), of all The Cigna Group's Medicare Advantage, Medicare Part D, Medicare Supplement and Care Allies businesses. The transaction closed earlier this year. As part of the transaction, HCSC is obtaining 30 legal entities, 13 of which are statutory legal insurance companies. These entities will be managed together under HCSC Medicare Holdings, a newly formed intermediate holding company. After discussions with company management regarding the planned operations, capitalization, projections and integration of these businesses, the financials of the rated legal entities in the group were consolidated under one uniform rating unit based on its combined financial strength assessments. The ratings reflect HCSC Medicare & Supplemental Group's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile, appropriate enterprise risk management (ERM) and the financial and operational support of its parent, HCSC. While capitalization had been pressured at a few of the legal entities, capital levels were bolstered as part of the final capitalization at sale, in line with the terms of the transaction. Additionally, HCSC has committed to fund additional capital throughout the course of 2025 as needed to support growth and additional projected acquisition related costs and operating losses. The 2024 Best's Capital Adequacy Ratio (BCAR) is at the strongest level but is expected to decline for a period of time during 2025 based on a combination of premium growth related to novated business at closing and additional incremental growth. Based on discussions with management, AM Best projects that this will be offset by capital contribution from HCSC as needed, and that the BCAR should improve to strongest again by year-end 2025. The balance sheet strength also reflects the sound consolidated absolute capital position of the group at approximately $2.7 billion, as well as its relatively modest underwriting leverage at 3.5 times and strong liquidity measures. Invested assets are conservatively allocated, held largely in investment grade fixed-income securities, and it is anticipated that the allocation will be similar under management by the parent going forward. The HCSC Medicare & Supplemental Group will contribute to net premium growth in core target markets for the organization, driven by membership growth across its suite of product offerings. This should help the broader organization offset attrition in its Medicaid line of business, as growth in the Medicare-related business is expected to continue. AM Best notes that consolidated underwriting and net income trends have been very challenged by changes to Medicare reimbursement and higher-than-expected medical cost trend, both of which are expected to continue in 2025. Management is focused on its star ratings and risk payment, as well as cost and expense management and efficiencies across its various Medicare Advantage plans as a part of improving future performance. Investment income has been steady and has meaningfully contributed to net earnings. The group's core offerings are Medicare Advantage, Medicare Part D and Medicare Supplement products, which are offered across numerous states that are outside of the parent's core market. The group has exhibited consistent historical membership growth in its main markets driven by government business, primarily Medicare Advantage, Medicare supplement and Medicare Part D, and other supplemental accident & health (A&H) offerings, which should complement and bolster its diversification. While competition remains strong in all lines of business, the new entities should help the organization continue to compete well and lift its market position. Given the Blue Cross Blue Shield businesses provide a significant competitive advantage in network relationships and consumer outreach, this should further help the expansion of these business lines. The ERM program will be integrated and managed at the ultimate parent level at HCSC, and it is well developed with a comprehensive risk identification, monitoring, mitigation and oversight process. Finally, these entities benefit from rating enhancement as part of the HCSC organization. They will be managed with a consolidated cost structure that management expects to lead to improved profitability and economies of scale and will expand HCSC's geographic presence and diversification with the addition of business. The new membership base and revenues will aid in providing additional scale and capabilities to HCSC's Medicare Advantage and supplemental health segments. The overall organization will grow financially through future revenue and operationally though a broader national footprint with deeper product penetration. These entities will also immediately contribute to HCSC's Medicare Advantage growth and market share, which has been a goal over the past few years. The FSR of A (Excellent) and the Long-Term ICRs of 'a' (Excellent) have been removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: HealthSpring Life & Health Insurance Company, Inc. Bravo Health Mid-Atlantic, Inc. Bravo Health Pennsylvania, Inc. HealthSpring of Florida, Inc. The Long-Term ICRs have removed from under review with developing implications and downgraded to 'a' (Excellent) from 'a+' (Excellent), and the FSR of A (Excellent) removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: Cigna National Health Insurance Company Medco Containment Life Insurance Company Loyal American Life Insurance Company Provident American Life and Health Insurance Company American Retirement Life Insurance Company Medco Containment Insurance Company of New York Cigna HealthCare of Colorado, Inc. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
18-06-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of PT Asuransi Astra Buana
SINGAPORE, June 18, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating of "a-" (Excellent) and the Indonesia National Scale Rating (NSR) of (Exceptional) of PT Asuransi Astra Buana (Asuransi Astra) (Indonesia). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Asuransi Astra's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in a neutral impact from Asuransi Astra's ultimate parent, Jardine Matheson Holdings Limited (Bermuda). Asuransi Astra's balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of year-end 31 December 2024, as measured by Best's Capital Adequacy Ratio (BCAR), and is expected to remain at this level over the medium term. The company's capital adequacy is supported by its consistently robust internal capital generation and low net underwriting leverage. AM Best views Asuransi Astra's investment portfolio to be of moderate risk, with a majority of investments allocated to bonds and mutual funds, comprising mainly domestically rated bond funds. An offsetting balance sheet strength factor is the company's elevated counterparty credit risk due to its exposure to domestic reinsurance companies not rated on an international FSR scale. AM Best also views Asuransi Astra's operating performance as strong, demonstrated by its five-year average combined ratio of 87.9% and return-on-equity ratio of 17.4% (2020-2024). Underwriting performance remained favourable in 2024, with the company reporting a combined ratio of 87.2%, supported by profitable business from its parent group, PT Astra International Tbk (Astra group). Investment returns remain a stable contributor to the company's overall earnings. Prospectively, AM Best expects Asuransi Astra to continue delivering a strong operating performance, supported by favourable underwriting performance and robust investment income. AM Best assesses Asuransi Astra's business profile as neutral. Asuransi Astra is a large insurance organisation in Indonesia, ranking second in the country's general insurance market based on 2024 gross premiums written. Asuransi Astra benefits from being a subsidiary of the Astra group, having preferential access to business from it, especially in the motor line of business. The company's portfolio is viewed to be diversified by line of business with key lines being motor, personal accident and health, and fire insurance, although with geographic concentration in Indonesia. Asuransi Astra has moderate distribution channel concentration to a financial leasing company, mainly in respect of its motor insurance business. Notwithstanding, distribution channels are viewed to be broadly diversified for the non-motor insurance business. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Ong Xin Ya Associate Financial Analyst +65 6303 5024 Victoria Ohorodnyk Director, Analytics +65 6303 5020 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
17-06-2025
- Business
- Business Wire
AM Best Upgrades Credit Ratings of Protector Forsikring ASA
AMSTERDAM--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to 'a-' (Excellent) from 'bbb+' (Good) of Protector Forsikring ASA (Protector) (Norway). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Protector's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The rating upgrades reflect the positive trend in operating performance over recent years, which has been underpinned by the company's efforts to adjust premiums, control expenses and enhance earnings in the different markets in which it operates. The company's strong operating performance was demonstrated in 2024 by a combined ratio of 87.4% (net/net IFRS 17) and a return-on-equity ratio of 30.9%, as calculated by AM Best. Protector's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), was at the strongest level at year-end 2024. AM Best expects this ratio to be maintained at least at the very strong level prospectively with retained earnings anticipated to continue supporting the company's growth plans. The balance sheet strength assessment also benefits from a good liquidity profile and prudent reserving practices. A partially offsetting factor is the company's moderate reinsurance dependence, although the associated risk is mitigated somewhat by a well-diversified panel of reinsurance counterparties of good credit quality. Additionally, Protector's relatively high allocation to equities and non-rated bonds expose it to elevated investment risk, which increases the potential for volatility in risk-adjusted capitalisation. Established in 2004, Protector benefits from its relatively strong foothold and expertise in Norway's commercial and public insurance sector, supported by established positions in other Nordic markets. The company has grown rapidly in recent years, in particular due to its expansion in the United Kingdom. In 2025, the company additionally began operations in France. The expansion in new markets has improved the geographical diversification of the portfolio; however, AM Best notes that it brings with it execution risk, and developments in new markets will be closely monitored by AM Best. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit
Yahoo
17-06-2025
- Business
- Yahoo
AM Best Downgrades Credit Ratings of Oregon Mutual Group Members
OLDWICK, N.J., June 16, 2025--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to B- (Fair) from B++ (Good) and the Long-Term Issuer Credit Ratings to "bb-" (Fair) from "bbb" (Good) of Oregon Mutual Insurance Company and Western Protectors Insurance Company, which are domiciled in McMinnville, OR and collectively referred to as Oregon Mutual Group. The outlooks of these Credit Ratings (ratings) have been revised to negative from stable. The ratings reflect Oregon Mutual Group's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM). The rating actions reflect the continued deterioration in Oregon Mutual Group's balance sheet metrics, which has been primarily driven by continued surplus erosion in three consecutive years that continued into first-quarter 2025. The surplus decline in 2025, was a result of continued adverse loss reserve development from several large claims, impacted by economic and social inflation, in addition to smoke related claims attributed to the California wildfires. Through first-quarter 2025, the group's surplus position declined by $6.5 million (12.8%) which led the overall risk-adjusted capitalization to decline to adequate levels. Despite Oregon Mutual Group's undertaking initiatives to improve profitability, efforts have not gained meaningful traction and have not effectively insulated the group's condition, which led to its ERM assessment being lowered to marginal. Oregon Mutual Group's operating performance is assessed as marginal due to volatile underwriting results in recent years, which have been driven by economic and social inflations. While the group has undertaken initiatives to improve profitability, recent results have trailed its peer composite. Oregon Mutual Group's underwriting and operating ratios, as well as its return-on-revenue and return-on-equity measures, compare unfavorably to the composite averages. The group's business profile is assessed as limited, reflecting its focus on commercial lines, with over half its book in California on a direct written premium basis. California has historically had a challenging regulatory environment that has impacted the group's results in recent years. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Daniel Mangano Senior Financial Analyst +1 908 882 1907 Christopher Draghi, CPCU, ARe Director +1 908 882 1749 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Business Wire
16-06-2025
- Business
- Business Wire
AM Best Downgrades Credit Ratings of Oregon Mutual Group Members
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating to B- (Fair) from B++ (Good) and the Long-Term Issuer Credit Ratings to 'bb-' (Fair) from 'bbb' (Good) of Oregon Mutual Insurance Company and Western Protectors Insurance Company, which are domiciled in McMinnville, OR and collectively referred to as Oregon Mutual Group. The outlooks of these Credit Ratings (ratings) have been revised to negative from stable. The ratings reflect Oregon Mutual Group's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM). The rating actions reflect the continued deterioration in Oregon Mutual Group's balance sheet metrics, which has been primarily driven by continued surplus erosion in three consecutive years that continued into first-quarter 2025. The surplus decline in 2025, was a result of continued adverse loss reserve development from several large claims, impacted by economic and social inflation, in addition to smoke related claims attributed to the California wildfires. Through first-quarter 2025, the group's surplus position declined by $6.5 million (12.8%) which led the overall risk-adjusted capitalization to decline to adequate levels. Despite Oregon Mutual Group's undertaking initiatives to improve profitability, efforts have not gained meaningful traction and have not effectively insulated the group's condition, which led to its ERM assessment being lowered to marginal. Oregon Mutual Group's operating performance is assessed as marginal due to volatile underwriting results in recent years, which have been driven by economic and social inflations. While the group has undertaken initiatives to improve profitability, recent results have trailed its peer composite. Oregon Mutual Group's underwriting and operating ratios, as well as its return-on-revenue and return-on-equity measures, compare unfavorably to the composite averages. The group's business profile is assessed as limited, reflecting its focus on commercial lines, with over half its book in California on a direct written premium basis. California has historically had a challenging regulatory environment that has impacted the group's results in recent years. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
