Best’s News & Research Service - October 25, 2007 11:00 AM (EDT)
A.M. Best Affirms and Assigns Ratings to SummaCare Insurance Company and SummaCare, Inc.
OLDWICK, N.J. //BestWire// - A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Good) and assigned issuer credit ratings (ICR) of “bbb+” to Summa Insurance Company and its subsidiary, SummaCare, Inc. (both of Akron, OH). The outlook for all ratings is stable.
Both companies’ ratings are driven by good risk-based capitalization, demonstrated by a combined Best’s Capital Adequacy Ratio score of 132% at year-end 2006. A.M. Best does not expect future results to deviate considerably from the current number, although growth initiatives are at the forefront of each company’s strategy.
Along with the support of their financially strong parent, Summa Health System, the companies have consistently generated favorable underwriting results and net income for the past three years, continuing through mid-2007. A.M. Best believes year-end 2007 results to be even more advantageous, owing to both companies’ exceeding projections on almost all metrics through mid-year 2007, including the commercial line of business, which reduced losses by more than half.
Summa Health System benefits from both companies' revenue and earnings growth and is committed to their support; thus, enhancing their ratings. The companies provide revenue scale and diversification to the system, generating one-third of Summa Health System’s revenues, as well as increased payor mix stability through members’ utilization of Summa Health System facilities.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.