|[August 01, 2014]
Fitch Publishes Inaugural Regional Health Insurers Dashboard
CHICAGO --(Business Wire)--
Link to Fitch Ratings' Report: Regional Health Insurers Dashboard
Fitch Ratings has published a special report that discusses the impact
of market profiles and size/scale, capitalization and financial
performance characteristics on regional health insurers' insurer
financial strength (IFS) ratings.
Within its rated universe, Fitch includes Group Health Cooperative,
Health Insurance Plan of Greater New York, Health Net, Inc. and Kaiser
Foundation Health Plan, Inc. as regional health insurers.
Regional health insurers' market position and size/scale characteristics
are typically consistent with 'A' to 'BBB' category Insurer Financial
Strength (IFS) ratings. The market positions s reflect membership bases
that are diversified by market type (commercial, Medicare, Medicaid),
but concentrated geographically.
Fitch considers the regional health insurers' leverage and
capitalization characteristics to be strong in comparison with their
current IFS ratings. Key metrics such as NAIC RBC ratios and ratios of
premiums to shareholders' equity are in the 'A' to 'AA' catgories.
Additionally, due in part to their status as not-for-profit or privately
owned organizations, several of the regional health insurers face little
pressure to return capital to owners facilitating their ability to build
strong capital profiles.
Regional health insurers' financial performance metrics vary materially
and the financial performance of Group Health Cooperative, Health
Insurance Plan of Greater New York and Health Net Inc. is more
consistent with the 'BBB' IFS rating category expectations, while Kaiser
Foundation Health Plan Inc.'s is more consistent with 'AA' rating
category expectations. Fitch attributes these differences in part to
differences in market position, size and scale characteristics and, to a
lesser extent, business mix.
The first edition of the 'Regional Health Insurers Dashboard' is
available at 'www.fitchratings.com'
or by clicking on the above link.
Fitch Ratings, Inc., 70 West Madison Street, Chicago, IL 60602
Additional information is available at 'www.fitchratings.com'.
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AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
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RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
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