OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb+” for 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 operating and net losses in 2016 beyond the expectations of A.M. Best. There was a material decline in capital at the lead insurance company over the past two years with further losses being reported in 2016, largely attributable to the company’s ConnectiCare operations having turned negative. This had previously been a stable source of earnings for the organization. As a result, risk-adjusted capital is anticipated to be below previously provided projections.
The ratings will remain under review while A.M. Best has further discussions with the company’s management team related to the capital plan and forecasts for 2016.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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