Best’s News & Research Service - February 02, 2024 05:25 PM (EST)
AM Best Places Credit Ratings for Several Subsidiaries of The Cigna Group Under Review with Developing Implications
- February 02, 2024 05:25 PM (EST)
//BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) for several of The Cigna Group’s Medicare entities, including those that focus on Medicare Advantage, Medicare Supplement, Medicare Part D and certain Cigna health maintenance organizations. Concurrently, AM Best also has placed under review with developing implications the FSRs of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of four Cigna HealthSpring companies. All entities are part of The Cigna Group (collectively referred to as Cigna) (headquartered in Bloomfield, CT) [NYSE: CI]. (Please see below for a detailed listing of the companies and ratings.) The Credit Ratings (ratings) of all other Cigna entities are unaffected.
The ratings of the entities listed below have been placed under review with developing implications following the recent announcement by Cigna that it has entered a definitive agreement under which Health Care Service Corporation will acquire all of Cigna’s Medicare Advantage, Medicare Part D and Medicare Supplement businesses. This business is mainly written by the entities that are part of the transaction with a small amount of business written by other legal entities that will remain with Cigna; this business will transition to legal entities that are part of the transaction prior to close. The transaction is expected to close in the first quarter of 2025, subject to regulatory approval and customary closing conditions.
The ratings will remain under review with developing implications until the transaction closes and AM Best evaluates the role of these entities within the Health Care Service Corporation organization.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) for the following companies have been placed under review with developing implications:
- Medco Containment Life Insurance Company
- Medco Containment Insurance Company of New York
- Cigna National Health Insurance Company
- Provident American Life and Health Insurance Company
- Loyal American Life Insurance Company
- American Retirement Life Insurance Company
- Cigna HealthCare of Colorado, Inc.
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) for the following companies have been placed under review with developing implications:
- HealthSpring Life & Health Insurance Company, Inc.
- HealthSpring of Florida, Inc.
- Bravo Health of Pennsylvania, Inc.
- Bravo Health of Mid-Atlantic, Inc.
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.