A.M. Best Downgrades Ratings of Medical Savings Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has downgraded the financial strength rating (FSR) to E (Under Regulatory Supervision) from C++ (Marginal) and issuer credit rating (ICR) to “rs” from “b” of Medical Savings Insurance Company (Medical Savings) (Indianapolis, IN).

On December 1, 2008, the Indiana Department of Insurance announced it had placed an Order of Rehabilitation against Medical Savings and appointed a receiver for the company. Medical Savings has reported large losses the past three years, which has led to considerable deterioration of its capital and surplus position.

As part of the Order of Rehabilitation, existing policyholders of Medical Savings have the opportunity to transfer their coverage, most on a guaranteed coverage basis, to Golden Rule Insurance Company, a subsidiary of UnitedHealth Group, Inc. Golden Rule Insurance Company has an FSR of A (Excellent) and an ICR of “a” and focuses on the individual major medical market.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.