A.M. Best Removes From Under Review With Negative Implications, Affirms Credit Ratings of EmblemHealth Inc.’s Insurance Subsidiaries

OLDWICK, N.J.--()--A.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “b+” 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 outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is negative.

The ratings were placed under review with negative implications on March 10, 2017, due to a sizeable decline in capital at the lead operating company, HIP, and a significant decline in the group’s risk-adjusted capitalization through year-end 2016. As a result of these events, HIP filed a capital plan with New York regulators. The plan resulted in a significant decrease of HIP’s statutory reserve requirement for 2016 and projects the restoration of capital within a three-year period.

Following a review of HIP’s capital restoration plan, A.M. Best remains concerned over the trend of financial losses and whether the various corrective action plans will strengthen future operating results. The negative outlooks reflect the continued uncertainty regarding HIP’s projected operating profitability and capacity to materially improve the level of risk-adjusted capitalization going forward.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Jennifer Asamoah, 908-439-2200, ext. 5203
Financial Analyst
jennifer.asamoah@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Doniella Pliss, 908-439-2200, ext. 5104
Associate Director
doniella.pliss@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Jennifer Asamoah, 908-439-2200, ext. 5203
Financial Analyst
jennifer.asamoah@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Doniella Pliss, 908-439-2200, ext. 5104
Associate Director
doniella.pliss@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com