CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 30, 2015 04:42 PM (EDT)
A.M. Best has placed under review with developing implications the financial strength rating of B++ (Good) and the issuer credit rating of "bbb+" of GHS Insurance Company (GHS) (Oklahoma City, OK).
The rating action follows a name change from GHS Property and Casualty Insurance Company, effective Jan. 1, 2015, and a change in focus to providing health insurance coverage. Additionally, Health Care Services Corporation, a Mutual Legal Reserve Company (HSCS), the ultimate parent of GHS, has committed up to $200 million in connection with its filing of various state department of insurance applications to expand its license authority and to pay the remainder of the property/casualty claims.
The under review status reflects the uncertainty regarding the level of HCSC' future financial contributions to GHS, as well as GHS' new strategic role within the group. A.M. Best will continue its discussions with the management team while assessing its capitalization, level of premium leverage and future strategic direction. A.M. Best anticipates that HCSC will continue to implicitly and explicitly support GHS' future growth initiatives in addition to the final run-off of the company's property/casualty liabilities.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.