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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 22, 2021 10:20 AM (EST)
AM Best has revised the outlooks to stable from positive for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of C (Weak) and Long-Term ICR of “ccc” (Weak) of Friday Health Plans of Colorado, Inc. (Friday Health Plans of Colorado) (Alamosa, CO). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Friday Health Plans of Colorado’s balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, limited business profile and weak enterprise risk management.
The revision of the Long-Term ICR outlook to stable from positive for Friday Health Plans of Colorado follows the deterioration of capital in the third quarter of 2021 due to underwriting and net losses. AM Best had anticipated that absolute and risk-adjusted capital would improve through capital growth and the execution of a reinsurance agreement with AXA S.A.; however, while the reinsurance agreement has provided some capital relief, the decline in capital is below projections.
AM Best will continue to monitor the financial results and will have further discussions with the company’s management team related to its capital plan.
This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.