A.M. Best Affirms "A-" (Excellent) Rating of Blue Cross of California.OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 26, 1997--Effective immediately, A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the "A-" (Excellent) rating of Blue Cross of California, Woodland Hills, Calif. The rating reflects the company's strong position in the small group and individual health market in California, its good profitability, diversified product portfolio, and strong systems capabilities. Offsetting these strengths are the current level of financial leverage and the pricing pressures of operating in the highly competitive California health insurance market. Blue Cross of California offers a broad portfolio of products in the California market ranging from tightly managed HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, products to PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there coverages and traditional products. This provides substantial competitive advantages in providing access to health- care providers and controlling medical costs. Through various affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , the company also offers specialty products, such as pharmacy management, mental health, disability and dental products. This diversification enhances client retention and contributes to the organization's profitability. The company maintains a strong niche in the small and individual health market. Despite increasing competition in the California market, consolidated enrollment has continued to increase. The organization maintains above-average financial leverage following the recent conversion of Blue Cross of California from a nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. entity to a public company. The rating reflects A.M. Best's expectation that management's plans to reduce financial leverage are attainable in the near term. A.M. Best also believes, based on the company's current business plans, that the consolidated earnings capacity of Wellpoint Health Networks Inc. will be sufficient to service the debt. In addition, A.M. Best affirmed the "A-" (Excellent) ratings of UNICARE Life & Health Insurance Co., Springfield, Mass., and BC Life and Health Insurance Co., Woodland Hills, Calif. These ratings reflect the companies' roles as strategic subsidiaries of WellPoint Health Networks Inc., the good prospects for growth and earnings performance and good capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. . A.M. Best also changed the rating of WellPoint Health Networks Inc. from "A-" (Excellent) to NR-3 (Rating Procedure Inapplicable in·ap·pli·ca·ble adj. Not applicable: rules inapplicable to day students. in·ap ). This change reflects the company's redomestication as a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. on Aug. 4, 1997, the transfer of all insurance business to Blue Cross of California, and its current role as ultimate holding company. The redomestication was done to simplify WellPoint's corporate structure and avoid the inconsistencies that resulted with the parent company being both a publicly traded entity and a licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. under the Knox-Keene Act in California. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: A.M. Best Jeffrey Dunsavage (908) 439-2200, ext. 5618 dunsavj@ambest.com |
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