A.M. Best Affirms A- Rating On United Wisconsin Life.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 6, 2000 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 United Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee Life Insurance Co., Green Bay, and its subsidiary, American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Medical Security Insurance Company of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Norcross. A negative outlook has been assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to both companies, indicating A.M. Best's concerns about their operational performance and profitability. United Wisconsin Life Insurance Co. is a member of American Medical Security Group, Inc. The rating reflects the company's role as a focused small group and individual life and health insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. , consistently strong capital base and sound operational strategies to return to profitability. Offsetting these strengths are a series of one-time charges tied to inadequate reserves and departures from certain regions; competition in the small group segment; a difficult regulatory environment and the need to further strengthen its managed-care programs. A.M. Best believes that United Wisconsin Life and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. and third-party administrator, American Medical Security Inc., are well positioned to compete in the individual and small-group health-care markets; products are sold through independent licensed agents. The companies specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in providing health-care benefits and other insurance products designed to maximize customer choice and control medical costs and utilization. Health benefit products provide discounts to insureds who use preferred-provider organizations. The companies contract with a minimum of two PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there networks in each region in which the company does business. A.M. Best also believes the companies' focus on the small-group market will give them a competitive advantage over multiple-line competitors, as will their continued customer service focus and low-cost structure. In the third quarter of 1999, the companies began a series of operational initiatives that they expect will return them to profitability. Initiatives such as a focus on customer service and claims management systems--both of which address growing competition from strong regional health insurers and health maintenance organizations--are expected to increase retention rates and membership in those markets not exited. Lapse rates lapse rate n. The rate of decrease of atmospheric temperature with increase in altitude. lapse rate The rate of change of any meteorological phenomenon, especially atmospheric temperature with altitude. have been acceptable, given the large rate increases implemented over the past three to five years. The negative outlook reflects the challenges the companies face as they work to restore profitability. The companies continue to face strong competition from established regional health insurers and HMOs in key markets. The companies have increased their focus on strengthening levels of service, which have suffered because of fluctuations in membership and previous acquisitions. A.M. Best believes the companies' return to profitability is possible if projected savings from operational and plan changes are realized. Key to this recovery are proper financial modeling and ongoing analyses of markets and product lines to ensure that the companies remain in profitable markets; some areas deemed unprofitable were exited in 1999. Proper claims management is imperative for both desirable customer service and actuarially sound reserve strategies. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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