A.M. Best Withdraws Ratings of Medical Benefits Mutual Life Insurance Company

OLDWICK, N.J.--()--A.M. Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Medical Benefits Mutual Life Insurance Company (MedBen) (Newark, OH). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to the company’s request to no longer participate in A.M. Best’s interactive rating process.

The rating affirmations reflect MedBen’s recent improvement in underwriting and operating results, as well as supportive risk-adjusted capitalization at year-end 2014. The organization undertook numerous steps to return to profitability, including implementing sizeable rate increases, tightening underwriting guidelines and non-renewing unprofitable and higher-risk accounts. MedBen’s capital position has benefited from favorable investment returns and above-average liquidity ratios that exceed its peers.

These factors are offset by MedBen’s narrow business profile, business concentration in Ohio and uncertainties surrounding the organization’s future strategic focus. MedBen’s traditional small group major-medical business continues to be de-emphasized; hence, the company is increasingly dependent on growth of its third-party administrator business and other product initiatives to provide for further diversification going forward.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • A.M. Best’s Liquidity Model for U.S. Life Insurers
  • Risk Management and the Rating Process for Insurance Companies
  • Understanding BCAR for U.S. and Canadian Life/Health Insurers

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Jennifer Afriyie
Financial Analyst
908-439-2200, ext. 5203
jennifer.afriyie@ambest.com
or
Joseph Zazzera, MBA
Assistant Vice President
908-439-2200, ext. 5797
joseph.zazzera@ambest.com
or
Christopher Sharkey
Manager, Public Relations
908-439-2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best
Jennifer Afriyie
Financial Analyst
908-439-2200, ext. 5203
jennifer.afriyie@ambest.com
or
Joseph Zazzera, MBA
Assistant Vice President
908-439-2200, ext. 5797
joseph.zazzera@ambest.com
or
Christopher Sharkey
Manager, Public Relations
908-439-2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com