A.M. Best Assigns "A" -Excellent- Rating to Blue Cross & Blue Shield of South Carolina.OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 13, 1998--A.M. Best Co. has 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. an "A" (Excellent) rating to Blue Cross & Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Columbia, S.C. The rating reflects the company's significant revenue growth, consistent profitability, strong core market presence, diversified diversified (di·verˑ·s earnings stream and advanced system capabilities. Offsetting factors include the company's growing affiliated investments, which put pressure on its surplus, and its client concentration in the government business segment. Blue Cross & Blue Shield of South Carolina has experienced significant revenue growth over the past several years from its increasing share of the South Carolina health-care market and through its role as provider of administrative services to the government market segment. Despite a broader market decline in earnings, the company has been profitable due to its disciplined underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. style and strong market focus. Its leading South Carolina home market profile continues to improve, as its market share is about 30% of the state population, up from 28% in 1994. The company has designed products to compete in all segments of the market and has established the infrastructure to service its clients on a timely and efficient basis. The sources of consolidated earnings stem from insured health-care contracts underwritten by the company and its 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, subsidiaries, fee-based administrative services and subsidiary units operating in the life, property/casualty and technology markets. The company's focus on technology defines its competitive advantage. This focus has resulted in operating efficiency through the development of advanced data management systems that strengthen the underwriting and servicing processes. The company's surplus adequately supports its existing business risk. Substantial investment in subsidiary operations has led to diversified earnings. However, this structure exposes the company to more stringent surplus requirements and pressures its capital adequacy profile. Also, A.M. Best views the company's client concentration in the TRICARE (formerly CHAMPUS CHAMPUS Civilian Health & Medical Program for Uniformed Services A health care plan for military dependents and retirees operated by the DoD Types of service HMO, PPO, and fee-for-service, through a single health plan known as TriCare ) segment as a potential weakness due to the potential for increased competition in this market. A.M. Best also has assigned "A" (Excellent) ratings to two subsidiary health maintenance organizations, Companion HealthCare Inc. and Preferred Health Systems Inc., both of Columbia, S.C.. The ratings reflect the strategic roles of the respective HMOs, which offer managed care option products to the Blue Cross & Blue Shield of South Carolina client base. Furthermore, A.M. Best has also raised the rating of Companion Life Insurance Co. from "A-" (Excellent) to "A" (Excellent), reflecting the company's strategic role in the overall operations of Blue Cross & Blue Shield of South Carolina. Separately, A.M. Best raised the rating of Blue Cross & Blue Shield of South Carolina's subsidiary, Companion Property & Casualty Group to "A" (Excellent) from "A-" (Excellent). The rating reflects the group's excellent profitability, adequate capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. liquidity. It also recognizes the group's well managed geographic and product diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. initiatives, profit from servicing carrier business and financial flexibility afforded by its parent. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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