OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of C (Weak) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "ccc" (Weak) of Health Insurance Plan of Greater New York, EmblemHealth Insurance Company and EmblemHealth Plan, Inc., collectively referred to as Emblem. Concurrently, AM Best has placed under review with developing implications the FSR of C (Weak) and the Long-Term ICR of "ccc" (Weak) of ConnectiCare, Inc. (ConnectiCare) (Farmington, CT). All companies are subsidiaries of EmblemHealth, Inc. and are domiciled in New York, NY, unless otherwise specified.
The Credit Ratings (ratings) reflect EmblemHealth Group's (EmblemHealth) balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management.
AM Best has placed the ratings of Emblem under review with developing implications following the announcement on July 23rd that EmblemHealth has agreed to sell ConnectiCare Holding Company, Inc. to Molina Healthcare, Inc. for $350 million. This transaction, when complete is expected to substantially increase absolute and risk-adjusted capitalization at EmblemHealth. The transaction is expected to be completed by the first half of 2025. The expectation is that the Emblem organization, including its primary regulated entity, Health Insurance Plan of Greater New York's surplus will receive a sizable net contribution from this sale. The ratings will remain under review while AM Best meets with management to further discuss the ultimate impact of the transaction on the organization's financial condition.
Concurrently, AM Best has placed the ratings of ConnectiCare under review with developing implications due to the pending transaction. The ratings reflect ConnectiCare's balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, neutral business profile and marginal enterprise risk management. The ratings of ConnectiCare will remain under review pending completion of the transaction and until AM Best can complete its assessment of ConnectiCare's post-acquisition rating fundamentals.
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 Performance Assessments, 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. For more information, visit .
Copyright 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Contacts
Joseph Zazzera
Director
+1 908 882 2442
joseph.zazzera@ambest.com
Sally Rosen
Senior Director
+1 908 882 2284
sally.rosen@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com