A.M. Best Affirms Highmark's Financial Strength and Debt Ratings; Revises Some Outlooks to Stable.OLDWICK, N.J. -- 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 financial strength ratings of A (Excellent) of Highmark Inc. (Highmark) (Pittsburgh, PA) and its two interactively-rated subsidiaries and the financial strength ratings of A- (Excellent) of its remaining 11 interactively-rated subsidiaries. The rating outlooks have been revised to stable from negative. A.M. Best has also affirmed the senior debt rating of "a-" of Highmark's $375 million 6.8% senior notes, due 2013. Additionally, A.M. Best has affirmed the financial strength rating of A- (Excellent) of Highmark Casualty Insurance Company (HCIC HCIC Hurricane Contracting Information Center HCIC Hawaii Captive Insurance Council ) (Pittsburgh, PA), revising its rating outlook to negative from stable. A.M. Best believes the result of the Pennsylvania Insurance Department's surplus and claims reserve review, combined with operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in central Pennsylvania and capital contributions to its life and casualty businesses, Highmark Life & Casualty Group, will not reduce Highmark's risk-based capital to a level not commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with its current rating, supporting a stable outlook. However, these issues continue to place near-to-medium term pressure on Highmark's financial strength and current moderate financial leverage, the latter approximating 20%. Highmark's consolidated health care insurance earnings continue to improve, complemented by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results from its strategic businesses. Although Highmark Blue Shield's Central Pennsylvania health insurance business continues to generate operating losses, management initiatives support a modest medium-term profit forecast. Consolidated earnings and debt service coverage should continue to improve moderately during the near term, facilitated by Highmark's seasoned management team, leading core market profile and excellent financial strength. The revised outlook of HCIC reflects A.M. Best's concerns pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to its reserve adequacy and the impact that adverse loss reserve development has had on its risk-adjusted capitalization and operating performance. For a complete listing of Highmark Inc.'s financial strength and debt ratings, visit http://www.ambest.com/press/013103highmark.pdf. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 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, industry composites, please visit http://www.ambest.com/health/. 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 http://www.ambest.com. |
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