A.M. Best Upgrades Ratings of Heartland Fidelity Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) to B++ (Good) from B+ (Good) and issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) to "bbb" from "bbb-" of Heartland Fidelity Insurance An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. Company (Heartland) (Washington, D.C.). The outlook for both ratings is stable. The ratings reflect Heartland's consistent positive operating results, growth in capital and expanding product portfolio. Heartland has reported positive operating results with good net income margins for the last five years. This performance is closely related to Heartland's core relationship with its affiliate, Benecard Services, Inc. Heartland's retention of net income from operations has directly attributed to the growth and high level of capital and surplus. In 2007, Heartland entered into a quota risk arrangement with two insurance carriers. These arrangements are projected to be the main source of new revenue growth for the organization in the near term. Offsetting rating factors include a very competitive pricing environment and concentration of Heartland's current book. Heartland's primary offerings are insured prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, products. The market for these products is highly competitive with large pharmacy benefit administrators (PBMs) and large regional and national health insurance plans all vying vy·ing v. Present participle of vie. vying vie for business. Heartland also has a concentration of its current book of business in the local government market in New Jersey, which is very price sensitive due to budget constraints A Budget Constraint represents the combinations of goods and services that a consumer can purchase given current prices and his income. Consumer theory uses the concepts of a budget constraint and a preference ordering to analyze consumer choices. . While profitability is projected to continue, these factors have put downward pressure on underwriting. For 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 www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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