OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the financial strength ratings of B+ (Good) and the issuer credit ratings of “bbb-” of Health Insurance Plan of Greater New York (HIP), HIP Insurance Company of New York, Group Health Incorporated (GHI) and ConnectiCare, Inc. (ConnectiCare) (Farmington, CT). All companies are subsidiaries of EmblemHealth, Inc. and domiciled in New York, NY, unless otherwise specified.
The under review status reflects a material decline in capital at HIP at year-end 2015, which was attributable to continued underwriting losses and an unrealized capital loss. These two items drove the level of absolute capital to decline by slightly more than 25% from year-end 2014. Operating results improved in 2015 compared with 2014, however, the continued losses have stressed the level of risk-adjusted capitalization. The 2015 results were impacted by the premium deficiency reserves, lower premiums and an increase in administrative expenses throughout the organization as the company implements its strategic plan.
The ratings will remain under review while A.M. Best has further discussions with the company’s management team related to the 2015 losses, capital plan and forecasts for 2016.
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 see A.M. Best’s Recent Rating Activity web page.
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