A.M. Best Revises Outlooks to Positive for Dental Care Plus, Inc.

OLDWICK, N.J.--()--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.

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.

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Contacts

A.M. Best
Craig Draghi
Financial Analyst
+1 908 439 2200, ext. 5164
craig.draghi@ambest.com
or
Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best
Craig Draghi
Financial Analyst
+1 908 439 2200, ext. 5164
craig.draghi@ambest.com
or
Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com