B
Fallon Health & Life Assr Co
Rating Date
June 2024
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Total
Assets
Capital
Health
Premiums
Net
Income
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Major Rating Factors: Fair overall results on stability tests (3.8 on a scale of 0 to 10) based on a significant -53% decrease in enrollment during the period. Rating is significantly influenced by the strong financial results of Fallon Health Inc. Excellent capitalization (10.0) based on good current risk-adjusted capital (severe loss scenario) reflecting improvement over results in 2019. Excellent quality investment portfolio (9.9) containing no exposure to mortgages, junk bonds, or unaffiliated stocks.
Other Rating Factors: Excellent liquidity (9.6) with ample operational cash flow and liquid investments. Weak profitability index (0.9) due to a decline in earnings during 2022. Average return on equity over the last five years has been poor at -50.0%.
Principal Lines of Business: --
Licensed in: MA
Principal Enrollment Breakdown: --
Other Highlights
Medical Loss Ratio
Medical Expense
Per Member Per Month ($)
793
Provider Compensation ($000)
Capitation Pay
49
Fee For Service
0
Contractual Pay
Salary
0
Bonus
77
Other
--
Member Physicians
Enrollment
Total Patient Encounters
Physician
Non-Physician
Corporate Info
Group Affiliation
Fallon Health Inc
Investment Rating
--
Company Address
10 Chestnut Street
Worcester, MA 01608
Phone Number
(508) 799-2100
NAIC Number
66828
Largest Affiliates
B
Worcester, MA - Health