AM Best Upgrades Credit Ratings for Delta Dental of California and Its Affiliates
- July 23, 2026 03:19 PM (EDT)
//BestWire// - AM Best has upgraded the Financial Strength Rating to A+ (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings to “aa-” (Excellent) from “a+” (Excellent) of Delta Dental of California (DDCA) (San Francisco, CA), and its affiliates, Delta Dental Insurance Company (Wilmington, DE), Delta Dental of Pennsylvania (Mechanicsburg, PA) and Delta Dental of New York, Inc. (New York, NY). These companies collectively are known as Delta Dental of California Group (DDCG). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect DDCG’S balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
DDCG’s overall balance sheet strength is assessed as very strong, supported by its risk-adjusted capitalization, which is assessed at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The group has consistently grown capital and surplus year-over-year since 2021, which continued in the first quarter of 2026. A conservative and highly liquid investment portfolio further supports this assessment.
DDCG continues to report positive operating results and maintains a strong operating performance assessment. Net premium growth has been consistent, with annual increases in total net premiums written over the last five years, which reached a high of $5.1 billion in 2025. Positive operating gains have historically been supported by both underwriting and investment income, and profitability metrics have consistently measured above industry averages.
The group’s business profile assessment is being changed to favorable from neutral. DDCG operates as one of the leading providers of oral health insurance benefits. The organization serves over 27 million patient members and over 1 million more through the Delta Dental Community Care Foundation. Dentegra Group, Inc., DDCA’s holding company, has the largest market share of all the member companies within the Delta Dental Plans Association, marketing in states that represent nearly half of the entire U.S. population. The considerable market share and commitment to innovation are the drivers of the business profile upgrade.
The group’s ERM program is supported by a well-established governance structure, with an embedded culture and risk management controls that utilize the three lines of defense strategy. The organization performs enterprise risk scenario analyses and stress testing to assess if its capital position is sufficient to absorb key risk events while supporting the execution of its strategic objectives. DDCG also continues to invest in its cyber security infrastructure and maintains cyber liability insurance coverage. AM Best will continue to monitor the organization’s ERM practices as the group’s operations evolve and new risks emerge.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.