A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit ratings (ICR) of "bbb-" of MVP Health Plan, Inc. and MVP Health Services Corp.

A.M. Best also has affirmed the FSR of B (Fair) and ICR to "bb" of MVP Health Insurance Company.

Concurrently, A.M. Best has upgraded the ICR to "bb" from "bb-" and the FSR to B (Fair) from B- (Fair) of MVP Health Insurance Company of New Hampshire, Inc. (Manchester, NH). The outlook for all ratings is stable. Collectively, all companies are subsidiaries of their direct parent, MVP Health Care, Inc.

Additionally, A.M. Best has withdrawn the FSR of B- (Fair) and ICR of "bb-" of MVP Health Plan of New Hampshire, Inc. (Bedford, NH) and the FSR of B (Fair) and ICR of "bb" of Preferred Assurance Company, Inc. (Rochester, NY), due to these entities having very minimal activities and are operating in a run-off status, as management has moved virtually all businesses to other insurance subsidiaries within the group as of January 1. All companies are domiciled in Schenectady, NY, unless otherwise specified

The rating affirmations of MVP Health Plan, Inc. and MVP Health Services Corp. reflect the companies' sustained operating earnings and good level of risk-adjusted capitalization. Additionally, the companies' favorable earnings make positive contributions to MVP Health Care, Inc., and MVP Health Plan, Inc.'s earnings have been the main driver of consolidated results of the parent. Moreover, dividends from MVP Health Plan, Inc. have been utilized by MVP Health Care, Inc. to provide capital contributions to affiliated insurance entities.

The affirmation of the ratings for MVP Health Insurance Company reflects the explicit financial support of MVP Health Care, Inc. as well as premium growth. However, A.M. Best remains concerned about the company's continued operating losses in early 2012 and will continue to monitor earnings at the entity.

The upgrading of the ICR of MVP Health Insurance Company of New Hampshire, Inc. recognizes its strategic role within the organization as well as improvement in its operating losses in 2011. The ratings also take into consideration improvement in the company's risk-adjusted capital position, which remains below the threshold for its current ratings based on Best's Capital Adequacy Ratio (BCAR), reflecting the importance of MVP Health Care, Inc.'s financial support.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: "Rating Members of Insurance Groups"; "Understanding BCAR for Life/Health Insurers"; and "Risk Management and the Rating Process for Insurance Companies." Best's Credit Rating Methodology can be found at ambest.com/ratings/methodology.

A.M. Best Company is an insurance rating and information source.

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