OLDWICK, N.J., June 10, 2022--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to "a+" (Excellent) from "a" (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Blue Cross & Blue Shield of Mississippi, A Mutual Insurance Company (BCBSMS), and Bluebonnet Life Insurance Company. The outlook of the Long-Term ICRs has been revised to stable from positive while the outlook of the FSR is stable. All companies are domiciled in Flowood, MS, and collectively are known as Blue Cross & Blue Shield of MS Group.
The Credit Ratings (ratings) reflect Blue Cross & Blue Shield of MS Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The primary driver of the rating upgrades is Blue Cross & Blue Shield of MS Group’s maintenance of the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The organization has shown the ability to grow capital and surplus regularly, driven primarily through stable earnings. Balance sheet strength is supplemented by favorable liquidity metrics and a high-quality, conservative investment portfolio.
Operating performance is assessed as adequate. The group has shown a modestly favorable trend in premium growth in recent years. Its business strategy is to underwrite to breakeven results and have investment and fee-based income drive net earnings, which it has done consistently. AM Best assesses Blue Cross & Blue Shield of MS Group’s business profile as neutral. It has strong market position in the Mississippi commercial health insurance segment, operating in all counties of the state. Offsetting the group’s strong market presence is business and geographic concentration risk, as revenue is derived principally from the commercial group segment in Mississippi. Blue Cross & Blue Shield of MS Group has a focus on cost-effective, quality health care models that are linked with outcome-based provider reimbursement. Additionally, the group maintains an appropriate ERM assessment. The ERM program is developed and mature, and is integrated in its organizational strategy.
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.
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