AM Best Withdraws Credit Ratings of Friday Health Plans of Colorado, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of “ccc” (Weak) of Friday Health Plans of Colorado, Inc. (Friday Health) (Alamosa, CO). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Friday Health’s balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, limited business profile and weak enterprise risk management.

Friday Health’s balance sheet fundamentals remain unfavorable and its risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), is very weak as absolute capital and surplus levels have been strained by operating losses. However, Friday Health’s parent continues to support the company through capital contributions ensuring that regulatory statutory minimum requirements are maintained. Operating results remained depressed in 2021 as the company continued to expand. The company reported net operating losses of $13.8 million due to increased medical loss and administrative ratios. The business profile is limited as the company is mainly concentrated in the individual exchange business in select service areas in Colorado and New Mexico, which limits its geographic reach. The company is in the process of evaluating a market entrance into additional service areas. Friday Health is working to develop a more comprehensive risk management processes to support its current operations and business expansion strategy.

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 www.ambest.com.

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Antonietta Iachetta
Senior Financial Analyst

+1 908 439 2200, ext. 5792

antonietta.iachetta@ambest.com

Bridget Maehr
Associate Director

+1 908 439 2200, ext. 5321

bridget.maehr@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best