News Column

Fitch Publishes Inaugural Regional Health Insurers Dashboard

August 1, 2014



CHICAGO--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Regional Health Insurers Dashboard

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753370

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' categories. 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'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR 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 WEBSITE.



Fitch Ratings

Mark Rouck, CFA, CPA

Senior Director

+1-312-368-2085

or

Media Relations:

Brian Bertsch, +1-212-908-0549 (New York)

brian.bertsch@fitchratings.com


Source: Fitch Ratings


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