Major Rating Factors: Excellent capitalization (6.9 on a scale of 0 to 10) based on good current risk-adjusted capital (severe loss scenario) reflecting significant improvement over results in 2020. Good overall results on stability tests (6.8) based on consistent premium and capital growth in the last five years. Rating is significantly influenced by the strong financial results of Elevance Health Inc. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Fair profitability index (4.7) with operating losses during 2019 and 2020. Return on equity has been fair, averaging 6.6% over the last five years. Excellent quality investment portfolio (9.6) containing small junk bond exposure.
Principal Lines of Business: --
Licensed in: PR
Principal Enrollment Breakdown: --