Major Rating Factors: Fair profitability index (3.6 on a scale of 0 to 10) due to a decline in earnings during 2021. Return on equity has been low, averaging 4.3% over the last five years. Fair overall results on stability tests (4.1). Rating is significantly influenced by the strong financial results of UnitedHealth Group Incorporated. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Excellent overall capitalization (10.0) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels. Excellent quality investment portfolio (8.8) containing small junk bond exposure.
Principal Lines of Business: --
Licensed in: NY
Principal Enrollment Breakdown: --