A.M. Best Affirms A- Rating Of Anthem Insurance and Subsidiaries.OLDWICK, N.J.--(BUSINESS WIRE)--May 11, 1999-- A.M. Best Co. today affirmed the A- (Excellent) rating of Anthem Insurance Cos. Inc. and its subsidiaries. The rating of the consolidated group reflects the strong regional market presence of the Anthem group of companies, the improvement in both consolidated Anthem earnings and the earnings at the Indiana plan. Management has demonstrated an ability to integrate its operating entities, as well as recognizing the need to expand beyond its existing geographic boundaries. The company maintains modest financial leverage and is faced with challenges in integrating operations from its announced acquisitions. This, combined with the competition the company faces and the organization's ongoing charitable trust The arrangement by which real or Personal Property given by one person is held by another to be used for the benefit of a class of persons or the general public. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , are offsetting factors. The Anthem organization has grown primarily through mergers and acquisitions to become one of the largest health-care organizations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , covering over 5 million members. Anthem has maintained market shares between 17% and 44% in its four major markets of Indiana (Anthem Insurance Cos. Inc.), Ohio (Community Insurance Co.), Kentucky (Anthem Health Plans of Kentucky Inc.), and Connecticut (Anthem Health Plans Inc.). The company has achieved this by offering a diversified portfolio of traditional and managed-care products designed for specific segments of the individual, group and national markets. Anthem's improved consolidated earnings performance is a result of increased revenue, improved medical-loss ratios, an ability to control administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and completed divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its non-core businesses. Anthem's strategy to develop a second region in the northeastern United States, Anthem East, includes the planned purchase of Blue Cross & Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , which is the leading insurer in the state with approximately 350,000 members and a 35% market share. Blue Cross & blue Shield of New Hampshire also includes Matthew Thornton Matthew Thornton (1714 – June 24, 1803), was a signer of the United States Declaration of Independence as a representative of New Hampshire. He was born in Ireland: his family immigrated to America when he was three years old, settling first at Wiscasset, Maine, and Health Plan. With the addition of Blue Cross & Blue Shield of New Hampshire, Anthem's Northeast presence will cover Connecticut and New Hampshire on a branded basis, and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of through Anthem Health & Life of New York. While Anthem's acquisition strategy has benefited its total assets, it has not resulted in additional capital to the parent company. Because many Blue Cross & Blue Shield organizations are 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. , Blues mergers and acquisitions are often challenged by the states' attorneys general. However, A.M. Best notes Anthem's ability to improve earning levels of previously acquired Blue plans. Anthem's major challenges will be to fulfill its growth strategy by developing its desired regions, enhance integration of merged entities into common product and service structures and, at the same time, remain competitive, converting existing membership to managed-care products. In recognition of Anthem's core operations, A.M. Best also affirmed the A- ratings of Anthem Health Plans of Kentucky Inc., Community Insurance Co. and Anthem Health Plans Inc. A.M. Best also affirmed the A- ratings of Anthem Health of Indiana, a health maintenance organization; Anthem Life Insurance Co. of Indiana; Anthem Life Insurance Co. of California; Anthem Alliance Health Insurance Co. (Texas); and Anthem Health & Life Insurance Co. of New York, reflecting their strategic roles in the Anthem organization. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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