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Yahoo
5 days ago
- Business
- Yahoo
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of EmblemHealth, Inc.'s Subsidiaries
OLDWICK, N.J., July 24, 2025--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of "ccc" (Weak) of Health Insurance Plan of Greater New York, EmblemHealth Insurance Company and EmblemHealth Plan, Inc., collectively referred to as Emblem. All companies are subsidiaries of EmblemHealth, Inc. and are domiciled in New York (NY). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Emblem's balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management (ERM). AM Best assesses Emblem's balance sheet strength as very weak, with risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), also assessed as very weak. Absolute capital and surplus improved slightly in 2024, driven by unrealized capital gains that offset net losses. In the first quarter of 2025, Emblem reported further improvement in its capital and surplus as well as gains from the sale of ConnectiCare operations in the first quarter of 2025, which resulted in more than a $60 million improvement in the capital and surplus at Health Insurance Plan of Greater New York, the lead entity. Emblem's investment portfolio is conservative, with cash and short-term comprising over half of the investment portfolio at year-end 2024. Although capital and surplus improved in 2024 and through first-quarter 2025, Health Insurance Plan of Greater New York, the lead operating entity, remains under a capital restoration plan with the New York State Department of Financial Services. The company is forecasting to restore capital by the end of 2025 and conclude the capital restoration plan. Emblem has a long-term trend of net losses and underwriting losses. However, AM Best acknowledges that results improved through year-end 2024, which continued into the first quarter of 2025. In the first quarter of 2025, Emblem reported a significant reduction in underwriting losses year over year and reported a slight net income for the quarter, which keeps a trend of three consecutive quarters of net income. The neutral business profile reflects Emblem's solid market position in the greater New York City market with a long-standing presence. Additionally, the organization derives a large portion of its membership from union and labor accounts, anchored by the City of New York account. Emblem's ERM is assessed as marginal. While the company has a fully developed ERM program, the organization faced challenges over the years (specifically during Covid periods) in meeting projections and the restoration plan with the New York State Department of Financial Services. Emblem has exceeded the restoration plan projections for the last two 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 Paul Frost Senior Financial Analyst +1 908 882 1768 Sally Rosen Senior Director +1 908 882 2284 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
5 days ago
- Business
- Business Wire
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings
BUSINESS WIRE)-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of 'ccc' (Weak) of Health Insurance Plan of Greater New York, EmblemHealth Insurance Company and EmblemHealth Plan, Inc., collectively referred to as Emblem. All companies are subsidiaries of EmblemHealth, Inc. and are domiciled in New York (NY). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Emblem's balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management (ERM). AM Best assesses Emblem's balance sheet strength as very weak, with risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), also assessed as very weak. Absolute capital and surplus improved slightly in 2024, driven by unrealized capital gains that offset net losses. In the first quarter of 2025, Emblem reported further improvement in its capital and surplus as well as gains from the sale of ConnectiCare operations in the first quarter of 2025, which resulted in more than a $60 million improvement in the capital and surplus at Health Insurance Plan of Greater New York, the lead entity. Emblem's investment portfolio is conservative, with cash and short-term comprising over half of the investment portfolio at year-end 2024. Although capital and surplus improved in 2024 and through first-quarter 2025, Health Insurance Plan of Greater New York, the lead operating entity, remains under a capital restoration plan with the New York State Department of Financial Services. The company is forecasting to restore capital by the end of 2025 and conclude the capital restoration plan. Emblem has a long-term trend of net losses and underwriting losses. However, AM Best acknowledges that results improved through year-end 2024, which continued into the first quarter of 2025. In the first quarter of 2025, Emblem reported a significant reduction in underwriting losses year over year and reported a slight net income for the quarter, which keeps a trend of three consecutive quarters of net income. The neutral business profile reflects Emblem's solid market position in the greater New York City market with a long-standing presence. Additionally, the organization derives a large portion of its membership from union and labor accounts, anchored by the City of New York account. Emblem's ERM is assessed as marginal. While the company has a fully developed ERM program, the organization faced challenges over the years (specifically during Covid periods) in meeting projections and the restoration plan with the New York State Department of Financial Services. Emblem has exceeded the restoration plan projections for the last two 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.
Associated Press
5 days ago
- Business
- Associated Press
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of EmblemHealth, Inc.'s Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)--Jul 24, 2025-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of 'ccc' (Weak) of Health Insurance Plan of Greater New York, EmblemHealth Insurance Company and EmblemHealth Plan, Inc., collectively referred to as Emblem. All companies are subsidiaries of EmblemHealth, Inc. and are domiciled in New York (NY). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Emblem's balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management (ERM). AM Best assesses Emblem's balance sheet strength as very weak, with risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), also assessed as very weak. Absolute capital and surplus improved slightly in 2024, driven by unrealized capital gains that offset net losses. In the first quarter of 2025, Emblem reported further improvement in its capital and surplus as well as gains from the sale of ConnectiCare operations in the first quarter of 2025, which resulted in more than a $60 million improvement in the capital and surplus at Health Insurance Plan of Greater New York, the lead entity. Emblem's investment portfolio is conservative, with cash and short-term comprising over half of the investment portfolio at year-end 2024. Although capital and surplus improved in 2024 and through first-quarter 2025, Health Insurance Plan of Greater New York, the lead operating entity, remains under a capital restoration plan with the New York State Department of Financial Services. The company is forecasting to restore capital by the end of 2025 and conclude the capital restoration plan. Emblem has a long-term trend of net losses and underwriting losses. However, AM Best acknowledges that results improved through year-end 2024, which continued into the first quarter of 2025. In the first quarter of 2025, Emblem reported a significant reduction in underwriting losses year over year and reported a slight net income for the quarter, which keeps a trend of three consecutive quarters of net income. The neutral business profile reflects Emblem's solid market position in the greater New York City market with a long-standing presence. Additionally, the organization derives a large portion of its membership from union and labor accounts, anchored by the City of New York account. Emblem's ERM is assessed as marginal. While the company has a fully developed ERM program, the organization faced challenges over the years (specifically during Covid periods) in meeting projections and the restoration plan with the New York State Department of Financial Services. Emblem has exceeded the restoration plan projections for the last two 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'sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide 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 viewGuide to Proper Use of Best's Ratings & © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on CONTACT: Paul Frost Senior Financial Analyst +1 908 882 1768 [email protected] Rosen Senior Director +1 908 882 2284 [email protected] Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE SOURCE: AM Best Copyright Business Wire 2025. PUB: 07/24/2025 02:32 PM/DISC: 07/24/2025 02:32 PM
