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 AultCare Health Insuring Corporation and its subsidiary, AultCare Insurance Company. Both companies are domiciled in Canton, OH. Collectively, the group is referred to as AultCare Health Group (AultCare).
The Credit Ratings (ratings) reflect AultCare’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
The revision of the outlooks reflects AultCare’s very strong overall balance sheet assessment and A.M. Best’s expectation that the group will continue to improve its risk-adjusted capitalization, based on a trend of solid operating performance and lack of dividend payments to its parent, Aultman Health Foundation.
The rating affirmations recognize the group’s consistently favorable operating performance, which has shown material improvement over the last two years. AultCare’s underwriting results in 2017 reached their highest level in the last five years. Additionally, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has improved in recent years through strong surplus growth and reduced business risk. AultCare’s balance sheet strength is supported by its strong liquidity and cash flow measures. These rating factors are offset by the group’s limited business profile, primarily due to business and geographic concentrations, and a marginal ERM program. AultCare has a developed ERM framework and reporting process; however, the program is still emerging as the company works to establish a solid governance structure, as well as risk tolerance levels and appetite statements.
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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