BestWeek: A.M. Best Study Benchmarks Provider Owned Health Plans.OLDWICK, N.J. -- A.M. Best Co.'s benchmarking study of 102 provider owned health plans found a strong correlation between the most profitable companies and those with strong risk-based capital (RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). ) scores, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new special report featured in BestWeek U.S./Canada. Two-thirds of those in the top quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. for profitability also were in the top RBC quartile. Also, in BestWeek Europe: The European Commission's Solvency II Directive is expected to substantially increase regulatory capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for most European insurers, although no extra capital is likely to be required for the market as a whole, according to a new A.M. Best special report. Also, in BestWeek U.S./Canada: Low interest rates, an apparent recession and persistent competition are placing increased pressure on group disability income insurers, according to a new A.M. Best special report. And in both editions of BestWeek: The Best's Global Insurance Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". finished the week of April 3 down 8.11% from a year ago. The composite index reflects the performance of 169 insurance stocks. The week's top stocks were Mitsui Sumitomo Insurance Group The Mitsui Sumitomo Insurance Group is a Japanese keiretsu, or group of companies with strong financial and cultural ties. Group companies Non-life insurance
The bottom five stocks were Gainsco, Hyundai Marine & Fire Insurance Co., Dongbu Insurance Co., Humana, and Health Net. BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com. 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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