A.M. Best Co. has affirmed the issuer credit rating (ICR) of
“bbb-” and all debt ratings of Coventry Health Care, Inc.
(Coventry) (Delaware) (NYSE: CVH).
At the same time, A.M. Best has upgraded the financial strength rating
(FSR) to A- (Excellent) from B++ (Good) and the ICRs to “a-” from “bbb+”
for Coventry Health Care of Iowa, Inc. (Omaha, NE) and Coventry
Health Care of Illinois, Inc. (Champaign, IL) (f/k/a PersonalCare
Insurance of Illinois, Inc.). A.M. Best also has upgraded the FSR to A-
(Excellent) from B++ (Good) and the ICR to “a-” from “bbb” for Coventry
Health Care of Kansas, Inc. (Kansas City, MO) and upgraded the FSR
to A- (Excellent) from B+ (Good) and the ICRs to “a-” from “bbb-” for Coventry
Health Care of Louisiana, Inc. (Metairie, LA) and Coventry Health
Care of Delaware, Inc. (Newark, DE). The rating upgrades reflect
each company’s strategic importance to the Coventry brand, as well as
the geographic and earnings diversification in each company’s respective
Additionally, A.M. Best has upgraded the ICR to “bbb+” from “bbb” and
affirmed the FSR of B++ (Good) of HealthCare USA of Missouri, LLC
(St. Louis, MO), due to its improved operating performance and
enrollment growth. Concurrently, A.M. Best has upgraded the FSR to B++
(Good) from B+ (Good) and the ICR to “bbb” from “bbb-” for OmniCare
Health Plan, Inc. (Detroit, MI) based on its favorable underwriting
trend and the adequate capitalization for its ratings.
A.M. Best also has upgraded the FSR to B+ (Good) from B (Fair) and the
ICRs to “bbb-” from “bb+” for Coventry Health Care of Florida, Inc.
, Coventry Health Plan of Florida, Inc. and Coventry Summit
Health Plan, Inc. (all domiciled in Sunrise, FL). The revised
ratings for each company are attributed to the strategic importance of
each to the Coventry brand in Florida by adding geographical and
earnings diversification as a health insurance carrier. The outlook for
all ratings is stable. (See link below for a detailed listing of the
companies and ratings.)
Coventry’s operating results were strong in 2011 and near-term results
are indicative of its strong performance. The earnings generated by
Coventry have geographic and product diversification with no single
reliance on one market or product. The medical loss ratios have been
managed well, and the company has strived to build low cost structures
in the various markets in which it operates.