CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 19, 2004 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Vision Service Plan (VSP) (Rancho Cordova, CA) and its 13 other affiliates. The rating outlook has been revised to positive from stable.
The revised outlook reflects VSP's position as the market leader and innovator in its niche vision industry, along with consistent operating gains and the maintaining of an excellent level of capitalization. Despite being a mono-line business, the vision care insurance segment has generated strong revenue growth from its diverse distribution through numerous partnerships, affiliations and brokers. For the past several years, the consolidated VSP organization has had strong consistent earnings. However, this excludes the extraordinary events related to reserving actions taken as a result of the change of its tax status in 2003.
VSP has generated consistently high annual growth rates and maintained its underwriting margins. Top line growth has sustained its position as the market leader. By expanding its geographic coverage across the country, the company continues to strengthen its market profile.
VSP's challenges include its concentration within the California market and the loss of its tax status on some of its insurance entities. The company continues to focus efforts to expand in under-developed markets, becoming less reliant on California's operations. VSP had its tax status revoked on half of its insurance entities, and A.M. Best anticipates that the remaining half could be revoked in the near to mid-term.
The financial strength rating of A- (Excellent) has been affirmed with a positive outlook for Vision Service Plan and its following members:
- Alaska Vision Services, Inc.
- Eastern Vision Service Plan, Inc.
- Indiana Vision Services, Inc.
- Massachusetts Vision Service Plan
- Mid-Atlantic Vision Service Plan, Inc.
- Vision Service Plan, Inc.
- Vision Service Plan, Inc., Oklahoma
- Vision Service Plan Insurance Company CT
- Vision Service Plan of Idaho, Inc.
- Vision Service Plan Insurance Company MO
- Vision Service Plan (OH)
- Vision Service Plan (WA)
- Wisconsin Vision Service Plan, Inc.
For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 HMO industry composites, please visit Best's Health Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.