AM Best Affirms Credit Ratings of Humana Inc. and Its Health Insurance Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for the majority of the health and dental insurance subsidiaries of
The ratings reflect Humana Health Group’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Humana Health Group’s balance sheet strength assessment has been pressured over the past year due to top line growth and dividends to the holding company outpacing net income. Operating performance for the company has continued to be favorable; however, earnings did decline in 2021 based on increased medical utilization and lower risk-adjusted revenue for its core Medicare Advantage business. AM Best notes that earnings were elevated in 2020 from the deferral of non-urgent care due to COVID. Risk-adjusted revenues for Humana Health Group’s Medicare Advantage business declined in 2021 due to the lack of claims and encounter data during 2020, which resulted from the sharp decrease in provider visits by seniors. Medical utilization returned to near normal levels in 2021 combined with increased medical expenditures for COVID testing and treatments. Operating performance for the first half of 2022 has improved with top line growth and margins being reported at more historic levels.
Humana has a favorable business profile with a national footprint and is the second largest insurer of Medicare Advantage in
Financial flexibility is provided by the holding company, Humana, which includes cash and a
The ratings of
Risk-adjusted capital for
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with stable outlooks for the following health and dental insurance subsidiaries of
-
Humana Insurance Company -
Humana Medical Plan, Inc. -
Humana Health Plan, Inc. -
Humana Health Benefit Plan of Louisiana, Inc. -
Humana Health Plan of Texas, Inc. -
Humana Health Insurance Company of Florida, Inc. -
Humana Benefit Plan of Illinois, Inc. -
Humana Health Plan of Ohio, Inc. -
Humana Employers Health Plan of Georgia, Inc. -
Humana Insurance Company of New York -
Humana Wisconsin Health Organization Insurance Corporation -
Humana Insurance Company of Kentucky - Cariten Health Plan Inc.
-
CarePlus Health Plans, Inc. -
HumanaDental Insurance Company -
CompBenefits Insurance Company -
CompBenefits Company -
CompBenefits Dental, Inc. -
The Dental Concern, Inc. -
DentiCare, Inc.
The following Long-Term IRs have been affirmed with stable outlooks:
Humana Inc.—
— “bbb-”(Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
— “bbb-” (Good) on
The following indicative Long-Term IRs have been affirmed with stable outlooks for the shelf
registration:
Humana Inc.—
— “bbb-” (Good) on senior unsecured debt securities
— “bb+” (Fair) on subordinated debt securities
— “bb” (Fair) on preferred stock
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
Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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