Major Rating Factors:
Fair overall results on stability tests (4.6 on a scale of 0 to 10) based on a decline in the number of member physicians during 2021. Rating is significantly influenced by the excellent financial results of Trinity Health Corporation. 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 (9.9) containing small junk bond exposure.
Other Rating Factors:
Excellent liquidity (7.3) with ample operational cash flow and liquid investments. Weak profitability index (1.6) with modest operating losses during 2017, 2019 and 2021. Average return on equity over the last five years has been poor at -2.8%.
Principal Lines of Business:
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Licensed in:
IA, OH
Principal Enrollment Breakdown:
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