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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 22, 2020 10:13 AM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating of C+ (Marginal) and the Long-Term Issuer Credit Rating of “b-” of Health Insurance Plan of Greater New York (HIP), EmblemHealth Insurance Company, EmblemHealth Plan, Inc. and ConnectiCare, Inc. (ConnectiCare) (Farmington, CT). All companies are subsidiaries of EmblemHealth, Inc. and domiciled in New York, NY, unless otherwise specified.
These Credit Ratings (ratings) actions follow EmblemHealth Group’s third quarter 2020 results, which reported income and capital levels below AM Best’s expectations. In 2016, the level of capital and surplus (i.e., statutory reserve) at HIP fell below its statutory requirement and as a result, the company filed a plan of surplus restoration with the New York State Department of Financial Services. The plan called for meeting and complying with a reduced statutory reserve requirement. The capital and surplus of HIP exceeded the reduced requirement at third quarter 2020, but was below AM Best’s expectations.
These ratings will remain under review with negative implications until AM Best meets with the company to discuss full-year 2020 financial results, as well as an update on the capital restoration plan. Negative rating action could occur if EmblemHealth Group’s full-year 2020 results and capital position deteriorate further, if EmblemHealth Group fails to provide AM Best with a capital plan or if AM Best believes that the capital plan is insufficient for the current ratings.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.