A.M. Best Affirms Rating of Delta Dental Plan of Wisconsin.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 21, 2002 A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of Delta Dental Plan Delta Dental Plan, n.pr an active member organization of the Delta Dental Plans Association (a not-for-profit organization), formed and guided by state dental societies to provide prepaid dental care to the public on a group basis. of Wisconsin Inc (DDPW DDPW Drowsy Driving Prevention Week (National Sleep Foundation) DDPW Defense Distribution Depot Puget Sound Washington ) (Stevens Point Stevens Point, city (1990 pop. 23,006), seat of Portage co., central Wis., on the Wisconsin and Plover rivers; inc. 1858. The major industries are insurance and the manufacture of wood products, cheese, furniture, and fishing equipment. The Univ. , WI). The rating outlook has been changed to positive. The rating reflects DDPW's consistently strong operating performance, significant leading market position in Wisconsin and strong capital and surplus. Partially offsetting these strengths are the risks associated with a single line of business within a single state of operations, significant exposure to the equity markets and increased concentration of administrative service only (ASO ASO arteriosclerosis obliterans. ASO 1 Administrative services organization, see there 2 Allele-specific–oligonucleotide hybridization 3 Anti-streptolysin O, see there ) contracts, which comprise approximately three quarters of DDPW's business. In Wisconsin, DDPW consistently produces positive underwriting results in all product segments and is the leading dental care insurer. Its growth in earnings is facilitated by measurable administrative expense disciplines, which help to limit the growth in the company's combined ratio. DDPW maintains a strong capital base to support its operations. Its increased enrollment in both non-risk and at risk products bolstered market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" levels and solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. DDPW's position as the market leader among dental insurers. Despite these aforementioned successes, DDPW's single state operating profile makes it susceptible to both market concentration and legislative risk. DDPW has taken steps to diversify its product mix and has done well in attracting both national and local group businesses with products and market strategies that promote flexibility and choice. A.M. Best acknowledges the increasing amount of ASO contracts in the company's business. While ASO business limits insurance risks and helps to ensure a certain level of profitability, its significant level within DDPW's portfolio can lead to prolonged diminished earnings. This is contrary to the organization's planned objectives and can limit capital growth long term. As a result of the turbulent nature of the equity markets over the past year and a half, DDPW must remain vigilant in the scrutiny of its common stock holdings so that any adverse developments in participating sectors can be abated Abated, an ancient technical term applied in masonry and metal work to those portions which are sunk beneath the surface, as in inscriptions where the ground is sunk round the letters so as to leave the letters or ornament in relief. From 1911 Encyclopædia Britannica . 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. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion