AM Absolute best Affirms Credit score Rankings of Highmark Inc. and Its Subsidiaries

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BEST’S CREDIT RATING ACTION

Absolute best’s Information & Analysis Carrier – August 31, 2022 05:07 PM (EDT)

  • August 31, 2022 05:07 PM (EDT)

Oldwick //BestWire// – AM Absolute best has affirmed the Monetary Energy Score (FSR) of A (Very good) and the Lengthy-Time period Issuer Credit score Rankings (Lengthy-Time period ICR) of “a+” (Very good) of Highmark Inc. (Highmark) (Camp Hill, PA) and its lifestyles/well being (L/H) subsidiaries, jointly referred to as Highmark Inc. Team. Similtaneously, AM Absolute best has affirmed the FSR of A (Very good) and the Lengthy-Time period ICRs of “a+” (Very good) of Highmark’s dental subsidiaries, which function below the United Concordia logo identify. Moreover, AM Absolute best has affirmed the FSR of A (Very good) and the Lengthy-Time period ICR of “a+” (Very good) of Highmark Casualty Insurance coverage Corporate (Highmark Casualty) (Pittsburgh, PA). Finally, AM Absolute best has affirmed the Lengthy-Time period Factor Credit score Rankings (Lengthy-Time period IR) of “a” (Very good) of Highmark’s present senior unsecured notes. The outlook of those Credit score Rankings (rankings) is strong. (See beneath for an in depth record of the corporations and the Lengthy-Time period IRs).

The rankings mirror Highmark Inc. Team’s stability sheet energy, which AM Absolute best assesses as most powerful, in addition to its good enough running efficiency, favorable industry profile and suitable endeavor menace control (ERM).

Highmark Inc. Team continues to care for the most powerful stage of risk-adjusted capitalization, as measured by way of Absolute best’s Capital Adequacy Ratio (BCAR), in line with profits retention and profitability during the last 5 years. Highmark Inc. Team’s running ends up in 2021 had been pushed by way of favorable underwriting effects that arose because of persevered ranges of decrease usage within the well being plan riding favorable underwriting ratios, blended with better-than-expected natural top rate enlargement throughout well being plan segments. Consolidated monetary reporting of the affiliations with HealthNow New York Inc. (now Highmark Western and Northeastern New York) and Gateway Well being Plan, Inc. (now Highmark Wholecare) additionally contributed to top-line enlargement. GAAP web effects during the last 5 years had been enhanced by way of a chain of one-time occasions together with: the sale of subsidiaries, Davis Imaginative and prescient in 2017 and Visionworks in 2019; the danger hall fee and get advantages discounts because of COVID-19 in 2020; and a big acquire at the association with Highmark of Western and Northeastern New York in 2021. Top rate construction were challenged for the gang because of aggressive and financial power in its number one markets, however Highmark Inc. Team reported excellent enlargement in 2020 and 2021 because of a mix of natural enrollment enlargement, premiums additions thru acquisitions and affiliations, and restricted charge motion. Premiums additionally had been favorable in 2020 because of the receipt of the owed menace hall fee from the government and because of the continuation of the general public well being emergency delaying Medicaid redeterminations. The Highmark group is a height 5 greatest Blue Pass Blue Protect plan in america throughout a variety of key monetary metrics, providing well being services throughout 4 states, with the addition of New York in 2021. Highmark Inc. Team has excellent industry diversification thru its nationwide clinical stop-loss industry, nationwide dental operations and generation platform services and products. Highmark Inc. Team additionally is a part of an built-in supply gadget with its associate, Allegheny Well being Community, in its Western Pennsylvania provider house, providing coordinated, top quality and cost-effective care and medical health insurance merchandise. The Highmark group additionally has a well-developed and complete ERM program, which is included into industry operations and strategic making plans.

The rankings of United Concordia mirror its stability sheet energy, which AM Absolute best assesses as very robust, in addition to its good enough running efficiency, impartial industry profile, suitable ERM, and strategic significance because the national dental operations of Highmark Inc. Team.

United Concordia’s risk-adjusted capitalization greater in 2020 and 2021 after deliberate discounts over the former two years, facilitated thru dividend bills to its father or mother that exceeded web profits. The present yr build up in capitalization used to be because of profits that exceeded the 2021 dividend bills. Possibility-adjusted capital, as measured by way of BCAR, stays on the very robust stage, however advanced for the second one consecutive yr. Underwriting source of revenue traits had been favorable, pushed partly by way of the corporate’s executive contracts, together with the Federal Staff Dental and Imaginative and prescient Insurance coverage Program and TRICARE Dental Plan, and by way of decreased usage because of the COVID-19 pandemic in 2020 and 2021. Top rate enlargement were constant pre-pandemic, however the financial fallout and the top rate credit granted on account of pandemic restrictions drove minimum enlargement in 2020 and 2021. United Concordia has a big club base, with greater than 9 million people, and a big nationwide dental community with roughly 126,000 dentists.

The rankings of Highmark Casualty mirror its stability sheet energy, which AM Absolute best assesses as most powerful, in addition to its good enough running efficiency, restricted industry profile, suitable ERM, and strategic significance to the father or mother thru its contribution to Highmark Inc. Team’s quit loss industry.

AM Absolute best has affirmed the FSR of A (Very good) and the Lengthy-Time period ICRs of “a+” (Very good) with strong outlooks, for Highmark Inc. Team and its following L/H subsidiaries:

  • HM Well being Insurance coverage Corporate
  • HM Existence Insurance coverage Corporate
  • HM Existence Insurance coverage Corporate of New York
  • Highmark Selection Corporate
  • Highmark West Virginia Inc.

AM Absolute best has affirmed the FSR of A (Very good) and the Lengthy-Time period ICRs of “a+” (Very good) with strong outlooks, for the next dental subsidiaries of Highmark Inc. Team:

  • United Concordia Firms, Inc.
  • United Concordia Insurance coverage Corporate
  • United Concordia Insurance coverage Corporate of New York
  • United Concordia Dental Plans of California, Inc.
  • United Concordia Dental Plans of Pennsylvania, Inc.
  • United Concordia Dental Plans, Inc.

The next Lengthy-Time period IR has been affirmed with a strong outlook:

Highmark Inc.-

— “a” (Very good) on $250 million 6.125% senior unsecured notes, due 2041

This press unencumber pertains to Credit score Rankings which were revealed on AM Absolute best’s website online. For all score knowledge in relation to the discharge and pertinent disclosures, together with main points of the place of business answerable for issuing each and every of the person rankings referenced on this unencumber, please see AM Absolute best’s Contemporary Score Job internet web page. For additional info in regards to the use and boundaries of Credit score Score reviews, please view Information to Absolute best’s Credit score Rankings. For info on the right kind use of Absolute best’s Credit score Rankings, Absolute best’s Efficiency Checks, Absolute best’s Initial Credit score Checks and AM Absolute best press releases, please view Information to Right kind Use of Absolute best’s Rankings & Checks.

AM Absolute best is a world credit standing company, information writer and information analytics supplier that specialize in the insurance coverage trade. Headquartered in america, the corporate does industry in over 100 international locations with regional places of work in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Town.

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