A.M. Best Affirms and Assigns Ratings to AvMed, Inc.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and assigned an issuer credit rating (ICR) of "bbb-" to AvMed, Inc. (AvMed) (Miami, FL). The outlook for the FSR has been revised to positive from stable, while the outlook assigned to the ICR is positive.

The outlook revision for the FSR reflects AvMed's continued favorable operating performance and recent return to profitable membership growth, both of which are strengthening risk-based capitalization. AvMed's stand-alone risk-based capital is supported by a resolution passed by its parent--SantaFe HealthCare--to maintain AvMed's risk-based capital at or above a specified level to support the ratings.

In prior years, AvMed strategically non-renewed specific accounts, which had significantly reduced membership in order to prevent a future drag on earnings. This strategy has produced favorable underwriting results, as has AvMed's return to profitable membership expansion.

AvMed's membership is mainly concentrated within the large group employer segment limiting the plan's revenue diversity. Membership concentration also exists within two counties in South Florida, subjecting the plan to geographic risk. A.M. Best does recognize the decline in both of these concentrations as AvMed has expanded its product portfolio to attract more small groups and expanded its provider network in new markets.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.