Major Rating Factors:
Fair overall results on stability tests (3.9 on a scale of 0 to 10) based on a steep decline in premium revenue in 2021, rapid enrollment growth during the past five years. Rating is significantly influenced by the strong financial results of Health Care Service Corporation a Mutual Legal Reserve Co. Excellent overall capitalization (10.0) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels. Weak profitability index (0.9) due to a decline in earnings during 2021. Average return on equity over the last five years has been poor at -21.6%.
Other Rating Factors:
Weak quality investment portfolio (0.0) containing little or no exposure to mortgages, junk bonds, or unaffiliated stocks. Weak liquidity (2.8) as a spike in claims may stretch capacity.
Principal Lines of Business:
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Licensed in:
OK
Principal Enrollment Breakdown:
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