OLDWICK, N.J. - (Business Wire) A.M. Best Co. has downgraded the financial strength ratings (FSR) to B (Fair) from B+ (Good) and issuer credit ratings (ICR) to “bb+” from “bbb-”of MVP Health Insurance Company (Schenectady, NY) and Preferred Assurance Company, Inc. (Rochester, NY). Additionally, A.M. Best has downgraded the FSRs to B- (Fair) from B (Fair) and ICRs to “bb-” from “bb+” of MVP Health Plan of New Hampshire, Inc. (Bedford, NH) and MVP Health Insurance Company of NH, Inc. (Manchester, NH). All of the above ratings have been placed under review with negative implications. Concurrently, A.M. Best has placed under review with negative implications and affirmed the FSRs of B+ (Good) and ICRs of “bbb-” of MVP Health Plan, Inc. and MVP Health Services Corp. (both of Schenectady, NY). These rating actions follow the reporting of negative capital and surplus levels at MVP Health Insurance Company and MVP Health Insurance Plan of New Hampshire, Inc. for third quarter 2009. The negative capital and surplus levels at these two insurance companies resulted from underwriting and net losses through September 2009. The management of the parent company, MVP Health Care, Inc. (Schenectady, NY), is working to gain regulatory approval from the New York State Insurance Department and the New York State Department of Health to transfer capital to these entities.
The ratings will remain under review until sufficient capital levels are achieved at all of the insurance subsidiaries and the completion of further discussions with MVP Health Care, Inc’s management on full year 2009 projections as well as financial projections for 2010 and the overall capital management of all insurance subsidiaries.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.
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.
A.M. Best Co.
Analysts:
Bridget Maehr, 908-439-2200, ext. 5321
bridget.maehr@ambest.com
or
Sally Rosen, 908-439-2200, ext. 5280
sally.rosen@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
