Jean-Luc Brunel, 74, is also being investigated on suspicion of human trafficking of minors for sexual exploitation, the Paris prosecutor said.
— NYT: Top Stories
Author: Michelle Dryden
One firefighter fell through a floor while responding on Saturday morning to a fire in the Elmhurst section of Queens.
— NYT: Top Stories
OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” and the Long-Term Issue Credit Ratings (Long-Term IR) of UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH]. AM Best also has affirmed the Short-Term Issue Credit Rating (Short-Term IR) of UnitedHealth Group. Concurrently, AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” of the majority of the health and dental insurance subsidiaries of UnitedHealth Group, collectively referred to as UnitedHealthcare. The outlook of these Credit Ratings (ratings) is positive.
In addition, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” from “a-” of Enterprise Life Insurance Company, Freedom Life Insurance Company of America and National Foundation Life Insurance Company. These companies are domiciled in Fort Worth, TX, and collectively are referred to as USHEALTH. Lastly, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” from “a-” of The Chesapeake Life Insurance Company (Chesapeake Life) (Oklahoma City, OK). The outlook of these ratings is stable. (See link below for a detailed listing of the companies and ratings.)
The ratings of UnitedHealthcare reflect its balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, very favorable business profile and very strong enterprise risk management (ERM). The positive outlooks for UnitedHealthcare reflect the continued strengthening of profitability metrics. While it is anticipated that UnitedHealthcare’s ability to control and manage medical cost will support longer-term earnings stability, the impacts from the COVID-19 pandemic have altered the operating performance trend. Operating results over the past year have been elevated due to the effects of the deferral of non-essential care, which was most evident during the second quarter of 2020. While utilization has returned to near-normal levels, there still is some depression in actual claims volume. Profitability metrics will most likely decline over the next year and be more in line with historical levels. The premium growth trend remains strong.
AM Best expects balance sheet strength to be maintained as strong based on the favorable operating results and the company’s capital management strategy. Risk-adjusted capital has shown strengthening over the past three years based on the high level of earnings and a moderate level of dividends to parent. UnitedHealthcare manages statutory capital closely to ensure capital and liquidity is maintained at appropriate levels. Investments are held mainly in investment grade fixed income securities with minimal exposure to below investment grade or equity investments. Liquidity is supported by consistently strong operating cash flow and supplemented by credit facilities with the parent company.
UnitedHealthcare’s business profile is very favorable as its strong earnings are well-diversified by geography and by business segment. The company has a nationwide presence with prominent market share in most markets. While the company has an increased amount of business derived from government programs, this balances well against the dependence on commercial business, which is susceptible to economic pressures. UnitedHealthcare’s large membership base affords the company the benefits of economies of scale for medical and administrative expenses. Furthermore, the company’s strategic partnerships with AARP and its affiliate, Optum, enhance product offerings and its health care service capabilities as well as for client retention.
UnitedHealth Group has a very mature and high-functioning ERM program. The company performs advanced stress and scenario testing, solvency assessment and economic capital modeling. The program is embedded within the company and is utilized in operational management of its business, strategic planning and in its response to the COVID-19 pandemic.
UnitedHealth Group continues to report strong consolidated revenue growth and operating earnings from its health insurance and nonregulated Optum business. Optum provides UnitedHealth Group with significant nonregulated cash flow and operating earnings, as well as business diversification. UnitedHealth Group has a high level of financial flexibility with material nonregulated cash flow, high dividend capacity from its health insurance subsidiaries and a $12.5 billion credit facility. Financial leverage has remained stable in the 40% range over the past two years and it expected to be managed in this range on a long-term basis. The percentage of goodwill and intangible assets to equity has been declining, mainly due to equity growth, and was at 115% at Sept. 30, 2020. Although this metric is on the high side, the company has no history of material write-downs and the company tests its goodwill annually. UnitedHealth Group’s earnings before interest and taxes (EBIT) interest coverage are strong at over 11 times for full-year 2019 based on its strong operating earnings.
The ratings of USHEALTH reflect its balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating upgrades of USHEALTH reflect the strengthening of its risk-adjusted capital through retained earnings.
The ratings of Chesapeake Life reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The rating upgrades of Chesapeake Life are based on improvement of its ERM assessment to appropriate, based on integration with the parent company’s ERM program.
The ratings of USHEALTH and Chesapeake Life are enhanced by UnitedHealth Group as they provide sales, product and technologies, which are part of UnitedHealthcare’s specialty business growth strategy.
A complete listing of UnitedHealth Group Incorporated and its subsidiaries’ FSRs, Long-Term ICRs and Long- and Short-Term IRs also is available.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Contacts
Bridget Maehr
Associate Director
+1 908 439 2200, ext. 5321
bridget.maehr@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Doniella Pliss
Director
+1 908 439 2200, ext. 5104
doniella.pliss@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
This fall New York City’s public schools faced perhaps their biggest challenge in memory: Could they resume in person safely? And for how long? We filmed in one school for 33 days to chronicle every step of the reopening.
— NYT: Top Stories
Vice President Mike Pence got the shot today. “I didn’t feel a thing,” he said. California reported 3 percent availability of I.C.U. beds.
— NYT: Top Stories
Lawmakers are hammering out details of a $900 billion relief package and a spending bill to avoid a government shutdown at midnight.
— NYT: Top Stories
The two women have had a year’s-long feud as Rimes had an affair with Glanville’s ex, Eddie Cibrian.
— FOX News
As the pandemic batters the poor, the rich prop up state budgets.
— NYT: Top Stories
The execution of Lisa Montgomery would be an injustice on top of an injustice.
— NYT: Top Stories
PARAMUS, N.J.–(BUSINESS WIRE)–Arena STEM, a new retail edutainment concept opened its first U.S. location at Westfield Garden State Plaza today. The flagship store will be located on level two near Nordstrom.
Arena STEM is a new and innovative concept that provides an interactive environment for kids and young adults to play, learn, and engage with science and technology. The 40,000 sq. foot facility offers hands-on experiences with real-life models, racetracks, events, contests, and classes that include 3-D drawing, robotics, model making, and more.
“More and more STEM curriculum has become an integral component of education in the United States and a gateway to STEM-related jobs,” said Arena STEM co-founder Sergei Manevich, who designed and developed the concept. “Arena STEM is a fun environment that utilizes STEM principles and fosters self-expression, critical thinking, and innovation.”
“Arena STEM will provide our guests a unique experience that engages them in a new and different way,” says Jay Daly, senior general manager of Westfield Garden State Plaza. “We are excited to welcome them to Westfield Garden State Plaza as we continue to expand the ways people can shop, dine, work, and play at the center.”
For more information on Arena STEM and center operations, hours, and services, shoppers can visit westfield.com/gardenstateplaza.
About Arena STEM
Arena STEM, co-founded in the U.S. by Sergei Manevich & Lenny Lozinsky, is a new and innovative edutainment concept in a retail setting, focused on activities in the technical sciences of Science, Technology, Education, and Mathematics combined with sports and hobbies. It offers people of all ages the ability to interact with the products sold through real-life models, tracks, events, contests, and classes that include 3-D drawing, robotics, model making, and more. Area STEM is supported by Starta Ventures’ partners, Alexey Girin and Serge Milman.
For further information, please visit www.arenastem.com
About Westfield Garden State Plaza
Westfield Garden State Plaza is the ultimate destination for fashion, dining, and entertainment in the NY/NJ metro area, offering the best selection of brands in every retail category. GSP is renowned for delivering new cutting-edge retail concepts to market. Just minutes from Manhattan in Paramus, N.J., millions of shoppers each year enjoy an unparalleled shopping and dining experience, personalized services, and amenities at GSP.
For further information, please visit www.westfield.com/gardenstateplaza.
Contacts
LISA HERRMANN, SR. DIRECTOR MARKETING
201-370-3343
MARJORIE WALLENS
Arena STEM, Director of Marketing
617-820-1883