A.M. Best Upgrades Ratings of USHEALTH Group, Inc.’s Subsidiaries
The rating upgrades reflect USHEALTH Group’s continued strong operating results, substantial revenue growth in Affordable Care Act (ACA)-exempt supplemental health lines of business, improved risk–adjusted capitalization and a change in financial leverage structure. USHEALTH Group’s earnings have increased significantly over the past four years, with its biggest increase in 2015, driven primarily by improved underwriting results. In 2015, the group experienced substantial premium growth, especially in its ancillary lines of business.
Partially offsetting these positive rating factors are the company’s lack of scale and growing competitive pressure in the ACA-exempt product space. Additionally, future revenue growth is tied to USHEALTH Group’s ability to grow its captive agency force, which may increase USHEALTH Group’s reliance on a line of credit used to pay agent commission advances.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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