S&P Affirms CIGNA Healthcare of NH Inc. 'BBBpi' FSR.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Nov. 21, 2001-- Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its triple-'Bpi' financial strength rating on CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) Healthcare of New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). Inc. (CHNH). The rating reflects implicit support from CHNH's ultimate parent as well as the HMO's good risk-based capitalization and very strong liquidity, offset by weak earnings performance. CHNH was incorporated in 1985 and is based in Hooksett, N.H. It is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Healthsource Inc., which is a wholly owned subsidiary of CIGNA Health Corp. CIGNA Health Corp. is an indirect, wholly owned subsidiary of CIGNA Corp. (single-'A'-plus issuer credit rating). Major Rating Factors: -- CHNH's risk-based capitalization is good, as demonstrated by a Standard & Poor's capital adequacy ratio of 111.6% at year-end 2000. -- Liquidity is very strong, with a Standard & Poor's liquidity ratio of 213.1% based on the company's year-end 2000 statutory financial statement. -- Although CHNH's net income was $3.9 million in 2000, its earnings are considered weak because of net losses from 1997 to 1999 totaling $16.5 million. -- Enrollment is good, based on average participant enrollment growth of 3.3% over the past three years. Ratings with a 'pi' subscript (1) In word processing and scientific notation, a digit or symbol that appears below the line; for example, H2O, the symbol for water. Contrast with superscript. (2) In programming, a method for referencing data in a table. are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. Ratings with a 'pi' subscript are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a 'pi' subscript are not subject to potential CreditWatch listings. Ratings with a 'pi' subscript generally are not modified with "plus" or "minus" designations. However, such designations may be assigned when the insurer's financial strength rating is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by sovereign risk Sovereign Risk The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. or the credit quality of a parent company or affiliated group. |
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