JUNE 23, 2022 11:40 AM (EDT)
AM Best Upgrades Credit Ratings of California Healthcare Insurance Company, Inc., A Risk Retention Group
|Connor Brach, FRM |
Senior Financial Analyst
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Manager, Public Relations
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Managing Director, Strategy & Communications
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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 23, 2022 11:40 AM (EDT)
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of California Healthcare Insurance Company, Inc., A Risk Retention Group (CHI) (headquartered in Roseville, CA). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect CHI’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrades reflect a revision in the operating performance assessment due to favorable trends in CHI’s performance relative to peers in the medical professional liability (MPL) insurance industry. Underwriting results have been consistently profitable and exhibited low volatility despite broader deterioration across the MPL market. Premium rebates are distributed to insureds based on CHI’s financial performance, at the discretion of the board of directors. Rebates have proven to be an effective policyholder retention tool, through rewarding member-owners for loyalty and favorable loss experience. Since rebates effectively reduce reported net premiums written and earned, AM Best considers CHI’s operating performance before and after rebates, both of which support the strong operating performance assessment. CHI’s business profile continues to be limited, primarily due to product and geographic concentration in MPL insurance for independent hospitals and other health care entities throughout California.
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.