OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has upgraded the financial strength rating (FSR) to
B (Fair) from B- (Fair) and issuer credit rating (ICR) to “bb” from
“bb-” of Dental Care Plus, Inc (DCP) (Cincinnati, OH). The
outlook for both ratings has been revised to positive from stable.
The rating upgrades reflect DCP’s positive operating performance and
improved capitalization. DCP reported favorable underwriting net income
in 2011 after two years of losses. The company’s level of risk-adjusted
capital improved in 2011 as a result of favorable earnings and flat
premiums year over year. Furthermore, DCP’s capitalization also improved
in the first quarter of 2012, due to a capital contribution of $300,000.
Offsetting these positive rating factors is the highly competitive
business environment in which DCP operates, where both local and
national multiline insurers vie for the profitable dental business. As a
dental insurance carrier and vision service provider, DCP’s business is
written in two states with a concentration of six to one in Ohio and
Kentucky, posing a geographic concentration risk.
Key rating drivers that could lead to positive rating actions for DCP
include sustained positive earnings and capital growth, which can be
developed organically or through capital contributions.
Key rating drivers that could lead to negative rating actions include
operating losses, a decline in risk-adjusted capital or higher premium
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:
“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 www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.David Mitchell, 908-439-2200, ext. 5556Senior
Rosen, 908-439-2200, ext. 5280Managing Senior Financial
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Source: A.M. Best Co.