OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Dental Care Plus, Inc. (DCP) (Cincinnati, OH).
The revised outlooks reflect DCP’s membership growth and an ongoing geographic and product expansion strategy. DCP has developed a trend of favorable membership growth over the past few years through product and geographic expansion. The company originally was licensed in three states, and over the past two years has increased the geographic footprint to eight states. Additionally, in response to the Affordable Care Act, DCP began offering products on state-based exchanges and has utilized this exchange presence to establish itself in new states to then later introduce commercial and group products.
An offsetting rating factor is DCP’s heavily concentrated business in the Midwest, as these expansion efforts are in the early stages. Approximately 75% of direct premium revenue is generated in Ohio and 15% in Kentucky, while the remaining states each make up less than 4% of the business. The dental marketplace in the Midwest is crowded with many national multi-line insurers vying to increase their foothold in the region and build market share. DCP’s competitors are able to bundle dental products with medical plans for lower premium rates.
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