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A.M. Best Withdraws Ratings of SHA, L.L.C. and Its Subsidiary

May 26, 2014

ENP Newswire - 26 May 2014

Release date- 23052014 - A.M. Best Withdraws Ratings of SHA, L.L.C. and Its Subsidiary.

A.M. Best has revised the outlook to negative from stable and affirmed the financial strength rating of B (Fair) and the issuer credit ratings of 'bb' of SHA, L.L.C. (d/b/a FirstCare) and its wholly owned subsidiary, Southwest Life and Health Insurance Company (SWL&H). Both companies are domiciled in Austin, TX. Concurrently, A.M. Best has withdrawn the ratings due to management's request to no longer participate in A.M. Best's interactive rating process.

The rating actions reflect FirstCare's unfavorable underwriting and operating results. The company's underwriting losses were attributed mostly to risk associated with expansion of the Medicaid block of business into new markets along with reimbursement rate issues. However, on a consolidated basis, the commercial line of business has been profitable over the last two years.

The negative outlook reflects the trend of weakened underwriting results and the potential impact that future underwriting losses could have on FirstCare's capitalization and its need for further capital infusions. The ratings do not reflect future strategic financial changes that may occur within the group.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.

A.M. Best's credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

A.M. Best receives compensation for interactive rating services provided to organizations that it rates. A.M. Best may also receive compensation from rated entities for non-rating related services or products offered by A.M. Best. A.M. Best does not offer consulting or advisory services. For more information regarding A.M. Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the A.M. Best Code of Conduct.

A.M. Best - Europe Rating Services Limited (AMBERS), a subsidiary of A.M. Best Company, is an External Credit Assessment Institutions (ECAI) in the European Union (EU). Therefore, credit ratings issued by AMBERS may be used for regulatory purposes in the EU as per Directive 2006/48/EC.

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Source: ENP Newswire

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