Major Rating Factors: Fair profitability index (3.2 on a scale of 0 to 10) with modest operating losses during 2018 and 2021. Average return on equity over the last five years has been poor at -0.5%. Fair overall results on stability tests (3.3). Rating is significantly influenced by the strong financial results of Humana Inc. Excellent overall capitalization (10.0) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels.
Other Rating Factors: Excellent quality investment portfolio (9.2) containing small junk bond exposure. Excellent liquidity (8.3) with ample operational cash flow and liquid investments.
Principal Lines of Business: --
Licensed in: NC, PA, SC, VA
Principal Enrollment Breakdown: --