OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of C+ (Marginal) and the Long-Term Issuer Credit Rating of “b-” of Health Insurance Plan of Greater New York (HIP), EmblemHealth Insurance Company, EmblemHealth Plan, Inc. and ConnectiCare, Inc. (ConnectiCare) (Farmington, CT). All companies are subsidiaries of EmblemHealth, Inc. and domiciled in New York, NY, unless otherwise specified.
These Credit Ratings (ratings) actions follow EmblemHealth Group's third quarter 2020 results, which reported income and capital levels below AM Best's expectations. In 2016, the level of capital and surplus (i.e., statutory reserve) at HIP fell below its statutory requirement and as a result, the company filed a plan of surplus restoration with the New York State Department of Financial Services. The plan called for meeting and complying with a reduced statutory reserve requirement. The capital and surplus of HIP exceeded the reduced requirement at third quarter 2020, but was below AM Best's expectations.
These ratings will remain under review with negative implications until AM Best meets with the company to discuss full-year 2020 financial results, as well as an update on the capital restoration plan. Negative rating action could occur if EmblemHealth Group's full-year 2020 results and capital position deteriorate further, if EmblemHealth Group fails to provide AM Best with a capital plan or if AM Best believes that the capital plan is insufficient for the current ratings.
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