Health plans

AM Best withdraws credit ratings from Colorado, Inc.’s Friday health plans – InsuranceNewsNet

OLDWICK, NJ–(BUSINESS WIRE)–
AM Best affirmed the issuer’s financial strength rating of C (low) and the issuer’s long-term credit rating of “ccc” (low) of Friday Health Plans of Colorado, Inc. (Friday Health) (Alamosa, CO). The outlook for these Credit Ratings (ratings) is stable. Concurrently, AM Best withdrew the ratings as the company requested to no longer participate in AM Best’s interactive ratings process.

The ratings reflect Friday Health’s balance sheet strength, which AM Best rates as very weak, as well as its marginal operating performance, limited business profile and weak business risk management.

Friday Health’s balance sheet fundamentals remain unfavorable and its risk-adjusted capitalization, as measured by the best capital adequacy ratio (BCAR), is very low, as absolute capital and surplus levels have been put at risk. strained by operating losses. However, Friday Health’s parent company continues to support the business through capital contributions ensuring that minimum legal regulatory requirements are maintained. Operating results remained depressed in 2021 as the business continued to expand. The company recorded net operating losses of $13.8 million due to increased medical losses and administrative ratios. The business profile is limited as the company is primarily concentrated in the individual trading business in certain service areas of Colorado and New Mexico, which limits its geographical scope. The company is evaluating market entry into additional service areas. Friday Health is working to develop more comprehensive risk management processes to support its current operations and business expansion strategy.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Antonietta Iachetta
Senior Financial Analyst

+1 908 439 2200 ext. 5792

[email protected]

Brigitte Maehr
Associate Director

+1 908 439 2200 ext. 5321

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Jim Peavy
Director, Communications

+1 908 439 2200 ext. 5644

[email protected]

Source: AM Best