JANUARY 31, 2023 01:55 PM (EST)
AM Best Revises Outlooks to Stable for Delta Dental of Minnesota Group Members
|Antonietta Iachetta |
Senior Financial Analyst
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Manager, Public Relations
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Senior Public Relations Specialist
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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 31, 2023 01:55 PM (EST)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Delta Dental of Minnesota (DDMN) (Minneapolis, MN) and Delta Dental of Nebraska (DDNE) (Omaha, NE), which are members of Delta Dental of Minnesota Group.
The Credit Ratings (ratings) reflect Delta Dental of Minnesota Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The revision of the outlooks to stable from negative reflects a change in strategy in 2022 where government losses are supported by the holding company, Stratacor. Net operating gain and net income have improved year over year through Sept. 30, 2022. Additionally, underwriting losses through third-quarter 2022 improved by $8 million when including the write-in for Government Programs Chargeback and would be significantly lower than a year ago. AM Best expects the holding company will continue to support DDMN’s government losses.
DDMN’s Best’s Capital Adequacy Ratio (BCAR) remains assessed as strongest despite fluctuation in its operating and net earnings, as well as dividend payments to its parent, Stratacor. Liquidity measures remain very strong, with liquidity above 400% supported by a conservative, liquid investment portfolio composed of high-quality invested assets, and by access to funds at its parent.
DDMN operates in Minnesota and Nebraska where it has strong brand recognition, solid market share and access to the national Delta Dental network. A vision product was added to its portfolio, which mitigates its concentration in dental insurance. However, AM Best acknowledges that Delta Dental of Minnesota Group operates in a competitive market with many other insurers vying for business.
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.