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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), HIP Insurance Company of New York, Group Health Incorporated (GHI) and ConnectiCare, Inc. (ConnectiCare) (Farmington, CT). All companies are subsidiaries of EmblemHealth, Inc. and domiciled in New York, NY, unless otherwise specified.
The under review status reflects the decline in statutory capital and surplus at the lead insurance company, HIP, in 2019 to below AM Best’s expectations. In 2016, the level of capital and surplus (i.e., statutory reserve) at HIP fell below its statutory requirement in 2016 and as a result, the company filed a plan of surplus restoration with the New York State Department of Financial Services. The plan calls for meeting and complying with a reduced statutory reserve requirement. AM Best notes that the capital and surplus of HIP exceeded the reduced reserve requirement at year-end 2019. The Credit Ratings (ratings) will remain under review while AM Best has further discussions with the company’s management team related to its capital plan. The ratings may be removed from under review with negative implications if AM Best believes that the capital plan is achievable and supportive of the current rating level. Negative rating action could occur if EmblemHealth fails to provide AM Best with a capital plan or if AM Best believes that the capital plan is insufficient for the current rating.
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. For more information, visit www.ambest.com.
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