Major Rating Factors: Fair overall results on stability tests (3.4 on a scale of 0 to 10) based on an excessive 42% enrollment growth during the period, poor risk diversification due to the company's size and a decline in the number of member physicians during 2021. Good overall profitability index (5.9) despite operating losses during 2017, 2018 and 2019. Excellent capitalization index (7.0) based on good current risk-adjusted capital (severe loss scenario). However, risk-adjusted capital has reached as low as the weak level during recent years.
Other Rating Factors: Excellent quality investment portfolio (9.9) containing small junk bond exposure. Excellent liquidity (7.3) with ample operational cash flow and liquid investments.
Principal Lines of Business: --
Licensed in: NC
Principal Enrollment Breakdown: --