A.M. Best Affirms Insurance and HMO Ratings of Aetna Inc.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 8, 2000 A.M. Best Co. has affirmed the ratings on the affiliated operating companies operating company A business that engages in transactions with outsiders. of Aetna Inc., Hartford, Conn. The rating action also applies to the operating entities within the Global Health (Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. ) and Global Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. (Aetna Financial Services) business segments of Aetna Inc. The ratings of Aetna U.S. Healthcare HMOs and affiliated health insurance entities reflect their role as strategic subsidiaries of Aetna Inc. as well as the improvement in the operating fundamentals of their core businesses and strong presence in a number of markets. The rating also reflects Aetna U.S. Healthcare's strong national brand name, excellent medical quality and management programs and the financial backing of its ultimate parent, Aetna Inc. These strengths are offset by significant integration challenges facing Aetna Inc. in the next 18 months relative to the 1999 acquisition of Prudential HealthCare, and the increasingly competitive and rapidly changing health care environment. Aetna Inc. continues to implement key initiatives to profitably grow its managed care business. In an effort to increase profitability, the organization has implemented commercial rate increases as well as focusing on key, care management strategies to control medical costs and improve medical outcomes. A.M. Best believes the organization has established a strong operating platform that will enable it to compete effectively against other managed care organizations. A. M. Best expects to see continued improvement in the organization's operating performance. A.M. Best believes that Aetna Inc.'s acquisition of Prudential Health Care has created integration challenges with respect to Prudential's historically problematic health care blocks of business. The poor financial performance of the Prudential business has increased the uncertainty of Aetna Inc.'s ability to return the business to profitability after Prudential Insurance Co., the former parent, stops making required reimbursements to Aetna in late 2000. Nevertheless, A.M. Best believes Aetna Inc. will maintain a solid financial structure and that the merger will result in considerable expense savings. In addition, A.M. Best has affirmed the A (Excellent) ratings of the two core operating entities of Aetna Financial Services: Aetna Life Insurance and Annuity Co. and its direct subsidiary, Aetna Insurance Company of America. The rating reflects the combined entities' very strong position in the defined contribution markets, strong management strategies and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. liquidity position. In addition, the rating acknowledges the excellent quality of its assets and Aetna Life and Annuity's expertise in asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. . A.M. Best also has affirmed the A rating of Aetna Life Insurance Co. The rating reflects the company's role as the core, group life and health insurance subsidiary of Aetna Inc.; its strong market presence and that of its 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. in the group life/health and managed health care markets; and its strong earnings performance. In addition A.M. Best has affirmed the A- (Excellent) ratings of Corporate Health Insurance Co., U.S. Health Insurance Co. (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 ) and U.S. Health Insurance Co. (Connecticut). Aetna Inc.'s affiliated 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, and insurance companies benefit from the organization's financial flexibility, which has the ability to generate capital in the form of debt or equity. Aetna Inc.'s current debt-to-capital ratio is 28%, which is in line with the current ratings for all operating companies. The A rating of the following HMOs is affirmed: -- 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. Health Care Systems of Pennsylvania, Inc. -- Aetna U.S. Healthcare Inc. (a New Jersey Corporation) -- U.S. Healthcare Inc. (a New York corporation) -- Aetna U.S. Healthcare Inc. (a Texas Corporation) -- Aetna U.S. Healthcare of North Texas -- Aetna U.S. Healthcare Inc. (a Virginia Corporation) -- Aetna U.S. Healthcare Inc. (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. ) -- NYLCare Health Plan of New Jersey -- NYLCare Health Plan of New York -- NYLCare of the Mid Atlantic Mid Atlantic can mean:
A.M. Best also has assigned an A rating to Prudential Health Care of New York. The A- (Excellent) rating of the following HMOs is affirmed: -- Aetna U.S. Healthcare Inc. (a Connecticut Corporation) -- Aetna U.S. Healthcare Inc. (a Massachusetts Corporation) -- Aetna U.S. Healthcare of California, Inc. -- Aetna Health Plan of Southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , Inc. -- NYLCare Health Plan of Connecticut -- Aetna U.S. Healthcare, Inc. (a Florida Corporation) -- Aetna U.S. Healthcare of Illinois Inc. -- Aetna U.S. Healthcare Inc. (a Louisiana Corporation) -- NYLCare Health Plan of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. -- Aetna U.S. Healthcare of the Carolinas, Inc. -- Aetna Health Plans of the Carolinas, Inc. -- Aetna U.S. Healthcare, Inc. (an Arizona Corporation) -- Aetna U.S. Healthcare Inc. (an Ohio Corporation) -- Aetna U.S. Healthcare Inc. (a Georgia Corporation) -- Aetna U.S. Healthcare Inc. (a Washington Corporation). A.M. Best has assigned an A- rating to: -- Aetna U.S. Healthcare of Colorado -- Aetna U.S. Healthcare of Maine -- Aetna U.S. Healthcare 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). -- Aetna U.S. Healthcare of Tennessee -- Prudential Health Care of California -- Prudential Health Care of Connecticut -- Prudential Health Care of Georgia -- Prudential Health Care Plan, Inc. 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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