Fitch Report Comments on U.S. Health Insurer Earning Revisions

CHICAGO--(BUSINESS WIRE)--According to a special report published last week by Fitch Ratings, the downward earnings revisions in the health insurance sector for 2008, which created a quick and in some instances severe correction in share prices, has not changed the rating agency's Stable Rating Outlook for the sector.

In recent weeks, several health insurance companies cited inadequate pricing, increased medical cost trends attributed to a heavy influenza season and declining investment income from recent interest rate drops as the cause for lower expected 2008 earnings. Year-to-date the market valuation for health insurers has fallen over 35%.

Fitch's Special Report on this issue, 'Health Insurers: Prognosis Unchanged: Ratings Stable Despite Downward Earnings Revisions', can be accessed from Fitch's website at: www.fitchratings.com under the following headers: Financial Institutions > Insurance > Special Reports.

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