JANUARY 25, 2023 10:29 AM (EST)
AM Best Affirms Credit Ratings of EyeMed Insurance Company
|Jennifer Asamoah |
Senior Financial Analyst
+1 908 439 2200, ext. 5203
Joseph Zazzera, MBA
+1 908 439 2200, ext. 5797
Manager, Public Relations
+1 908 439 2200, ext. 5159
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 25, 2023 10:29 AM (EST)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of EyeMed Insurance Company (EIC) (Phoenix, AZ). The outlook of these Credit Ratings (ratings) is stable. EIC, along with EyeMed Vision Care, LLC, are the North America-based entities of EssilorLuxottica, the ultimate parent.
The ratings reflect EIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings consider EIC’s strategic importance to EssilorLuxottica, as well as the comprehensive operational support provided by its parent company.
The ratings also reflect EIC’s risk-adjusted capitalization at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet strength assessment is enhanced by a highly liquid investment portfolio and solid liquidity measures. The ratings also take into consideration the company’s dependence on reinsurance programs and history of dividend payments.
EIC reported consistent favorable operating performance through 2021 and the latter part of 2022. Based on its five-year average return-on-equity ratio, EIC continues to outperform its peer composite. Furthermore, the company continues to experience strong premium growth, reflective of its favorable brand recognition and affiliation with EyeMed Vision Care, LLC, as well as its ultimate parent. The ratings also reflect the organization’s established market presence and solid overall market share in the vision care space. EIC is strategically important to EssilorLuxottica’s vertically integrated business model, as its primary insurance operating entity. The ratings also receive enhancement from EIC’s ultimate parent EssilorLuxottica, a global market leader, with a far reaching and well-established presence and overall favorable creditworthiness, which supports the insurance operations.
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.