Best’s News & Research Service - March 01, 2018 01:56 PM (EST)
A.M. Best Withdraws Credit Ratings of Members of Health Net Group
- March 01, 2018 01:56 PM (EST)
Oldwick //BestWire// - A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb” of Health Net of California, Inc., Health Net Life Insurance Company, Health Net Health Plan of Oregon, Inc. (Tigard, OR) and Health Net of Arizona, Inc. (Tempe, AZ) (collectively referred to as Health Net Group). All companies are domiciled in Woodland Hills, CA unless otherwise specified. The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings affirmations reflect the Health Net Group’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. Health Net Group’s operating results have improved materially since it was acquired by Centene Corporation (Centene) in 2016. Health Net Group reported large operating losses in 2015 and 2016; however, results improved substantially through third quarter of 2017. Additionally, through the explicit capital support of Centene, Health Net Group’s risk-adjusted capitalization has been maintained at an adequate level. Health Net Group provides geographic diversity to Centene with its solid market presence in California, complemented by material enrollment in Oregon and Arizona.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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