Best’s News & Research Service - May 03, 2023 11:41 AM (EDT)
AM Best Comments on Credit Ratings of BCBS of MI Mutual Ins. Co. and Sub. Following Affiliation Announcement With BCBS of VT
- May 03, 2023 11:41 AM (EDT)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of Blue Cross Blue Shield of Michigan Mutual Insurance Company (Detroit, MI) and Blue Care Network of Michigan (Southfield, MI) (collectively known as BCBS MI) remain unchanged following the May 1, 2023, announcement that Blue Cross Blue Shield of Vermont (BCBSVT) will become part of the BCBS MI family of companies through an affiliation agreement. BCBSVT is an independent licensee of the Blue Cross Blue Shield Association and offers a diversified portfolio of health products in Vermont.
AM Best will continue to monitor developments at BCBS MI as the affiliation goes through regulatory approval. Under the affiliation agreement, BCBSVT becomes part of the BCBS MI enterprise family of companies but operates as an independent plan with a Vermont-based management team and board. As an affiliation, there will be no financial considerations between the two organizations. Premiums and surplus are expected to remain independent and available to support the policyholders of each respective plan prospectively. This affiliation should allow BCBS MI to leverage existing resources and potentially provide additional economies of scale.
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.