CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JULY 03, 2008 12:00 AM (EDT)
A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Celtic Insurance Company (Celtic) (Chicago, IL) remain under review with negative implications.
On July 1, 2008, Celtic Group, Inc., parent of Celtic, was acquired by Centene Corporation (Centene) (St. Louis, MO) [NYSE: CNC]. A.M. Best currently does not interactively rate Centene.
Centene relies heavily on the highly regulated Medicaid market for premium income and profits and has no prior experience in the individual major medical market. Celtic has experienced a contraction of its book of business over the past few years and has faced an increasingly difficult competitive environment in the individual major medical market.
A.M. Best notes that Celtic's ratings could face considerable downward pressure due to the aforementioned challenges at both Centene and Celtic. The ratings will remain under review until A.M. Best has further dialogue with Centene.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.