Category: Business

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance—AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) to Mainsail Insurance Company (Mainsail) (headquartered in Bedminster, NJ). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Mainsail’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Mainsail is a newly formed, wholly owned subsidiary of Spinnaker Insurance Company (Spinnaker). The ultimate parent company is Hippo Holdings Inc., which acquired Spinnaker on Aug. 31, 2020. The ratings of Spinnaker are being extended to Mainsail, which plans to write admitted coverages sourced through program administrators and managing general agents. The ratings assigned to Mainsail reflect the existence of a 100% intercompany quota share reinsurance agreement with Spinnaker.

The FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) for the members of Spinnaker Insurance Group were most recently affirmed on Oct. 13, 2021 (see related press release).

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Gordon McLean

Senior Financial Analyst
+1 908 439 2200, ext. 5304
gordon.mclean@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Raymond Thomson, CPCU, ARe, ARM
Associate Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

OLDWICK, N.J. — (BUSINESS WIRE) — AM Best has commented that the Credit Ratings (ratings) of UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH] and its insurance subsidiaries remain unchanged following the announcement that the group will acquire LHC Group Inc. (LHC) (Lafayette, LA) [NASDAQ: LHCG], a national provider of home-health care services. The outlooks of the ratings remain stable.

LHC is to be combined with UnitedHealth Group’s Optum Health operations. The combination of LHC and Optum Health will aim to strengthen its presence for in-home care, which when facilitated through Optum Health’s value-based care and experience, could become a lower-cost alternative to nursing homes and a way to reduce hospital stays, especially among the senior population.

The transaction, valued at approximately $6 billion, including $600 million debt of LHC that UnitedHealth Group would retire, was announced on March 29, 2022. The transaction is expected to close during the second half of the year, subject to customary regulatory approval, as well as approval from LHC’s shareholders. Concurrently, UnitedHealth Group expects to close the $13 billion acquisition of Change HealthCare, as previously announced, in the second half of 2022, which was delayed following an antitrust suit from the U.S. Department of Justice.

Given the scale of the two transactions combined, as well as uncertainties around regulatory approval and credit markets later in the year, AM Best is concerned that UnitedHealth Group’s balance sheet metrics could be pressured. AM Best anticipates that UnitedHealth Group will finance a portion of the two transactions through a combination of debt and cash. The combined cost of the two transactions would result in an initial increase in financial leverage to approximately 41% at year-end 2022, as estimated by AM Best. Furthermore, UnitedHealth Group’s percentage of goodwill and intangible assets to equity is high and was 114.4% at Dec. 31, 2021, and the completion of the two transactions would increase this metric and put pressure on the enterprise’s balance sheet. However, UnitedHealth Group has managed its financial leverage at 40% over the long term, experiencing temporary fluctuations following sizeable acquisitions. AM Best anticipates that the group will continue to deploy deleveraging actions to revert to the 40% range, as it has done in the past. Year-end 2021 financial leverage was 39.4%, as calculated by AM Best, which was supported by equity growth and capital management.

UnitedHealth Group also has a high level of financial flexibility, supported by its large commercial paper program, parent company cash and substantial subsidiary dividend capacity, as well as a revolving credit facility that increased to $15 billion through year-end 2021. Furthermore, UnitedHealth Group has significant nonregulated operating earnings and cash flows from its Optum operations, which include Optum Rx, Optum Health and Optum Insight.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Antonietta Iachetta
Senior Financial Analyst
+1 908 439 2200, ext. 5792
antonietta.iachetta@ambest.com

Doniella Pliss
Director
+1 908 439 2200, ext. 5104
doniella.pliss@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance—AM Best has downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb+” (Good) from “a-” (Excellent) of Florida Farm Bureau Casualty Insurance Company and its fully reinsured subsidiary, Florida Farm Bureau General Insurance Company, collectively referred to as Florida Farm Bureau Group. The outlook of the FSR has been revised to stable from negative while the outlook of the Long-Term ICR is negative. Both companies are domiciled in Gainesville, FL.

The Credit Ratings (ratings) reflect Florida Farm Bureau Group’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). Additionally, the ratings reflect enhancement given the implicit and explicit support provided by its parent, Southern Farm Bureau Casualty Insurance Company.

These rating actions follow the group’s results through year-end 2021, which reflect a 28% surplus decline from the prior year and a cumulative decline of 35% over the most recent five-year period. Additionally, the group’s reserve adequacy has been trending unfavorably across all major lines of business. Deterioration continues to be driven by underwriting losses stemming from storms, hurricane activity and ongoing pressure in the auto line of business. Additionally, operations remain influenced by the unsettled Florida operating environment. The group has implemented numerous mitigation efforts including reserve strengthening, rate increases, non-renewal of undesirable risks, halting new business in certain lines of coverage and management of the assignment of benefits issue. However, the ultimate effectiveness of these initiatives remains to be seen.

The stable outlook on the FSR reflects the group’s strongest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR) and AM Best’s expectation that the very strong balance sheet strength assessment will be maintained in the near-term. The negative outlook on the Long-Term ICR reflects continued deterioration in operating performance due to the level of underwriting loss and corresponding surplus declines. The Long-Term ICR outlook also reflects pressure on the group’s ERM assessment as results have yet to improve substantially despite corrective actions. The expectation is that in the near-term, operating results will begin to show some improvement and reflect the effectiveness of risk management practices in-line with the group’s risk-profile.

Florida Farm Bureau Group’s business profile assessment reflects its limited operating territory within a single hurricane-prone state. Severe weather continues to be the group’s primary risk, and much of its ERM program has been centered on efforts to mitigate this exposure through a comprehensive catastrophe reinsurance program.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Lauren Magro

Financial Analyst
+1 908 439 2200, ext. 5181
lauren.magro@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Richard Attanasio
Senior Director
+1 908 439 2200, ext. 5432
richard.attanasio@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance—AM Best has commented that the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Michigan Professional Insurance Exchange (MPIE) remain unchanged following the recent announcement of its pending acquisition by MMIC Insurance, Inc. (MMIC), and its parent company, Constellation, Inc. (Constellation). The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in third-quarter 2022. MPIE is domiciled in Michigan.

On March 25, 2022, MMIC announced that it has entered into a definitive agreement under which MPIE will cede its loss reserves through a loss portfolio transfer (LPT) agreement and enter into a quota share and renewal rights agreement with MMIC for MPIE’s future business.

Under the LPT, MPIE will cede 100% of its loss and loss adjustment expense reserves to MMIC. Concurrent with the LPT, MPIE will execute a go forward 100% quota share and renewal rights agreement with MMIC. MPIE will pay MMIC 100% of premium and MMIC will assume 100% of ongoing losses and loss adjustment expenses and 100% of existing unearned premium reserves. Both parties will execute an asset purchase agreement. Constellation Solution, Inc., a subsidiary of Constellation, will purchase the assets of MPIE and the membership interests of its subsidiary companies, PRCD Inc. and MPIE Consulting dba ERC Risk Solutions, LLC.

It is anticipated that upon the conclusion of the various agreements and business transfers, the ratings of MPIE will move to a non-rated status given the effective discontinuation of its operations within the current legal entity. Throughout the transaction period, minimal operational or financial changes are anticipated. As is customary, AM Best will continue to monitor MPIE’ risk-adjusted capitalization, operating performance, business profile and enterprise risk management.

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 use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Brian O’Larte
Director
+1 908 439 2200, ext. 5138
brian.o’larte@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Richard Attanasio
Senior Director
+1 908 439 2200, ext. 5432
richard.attanasio@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

MORRISTOWN, N.J. & AUCKLAND, New Zealand — (BUSINESS WIRE) — Arria NLG, a leading provider of natural language generation (NLG) technologies, has appointed Managing Director and Innovation Strategist, Mark Goodey, to cement Arria Investment Analyst as the Banking, Financial Services, and Insurance (BFSI) industry leader.

Arria Investment Analyst uses natural language technologies to bring 100 percent accuracy to investment analysis and to create data-driven investment commentary.

“I am excited to lead this initiative,” said Goodey. “Arria’s Investment Analyst uses natural language technology to analyze investment portfolio performance. It’s a technology uniquely placed to support asset managers, asset owners, and the financial services industry, so what used to take hours or days can now be accomplished in seconds.”

“Mark brings a wealth of experience to this role, having spent his entire career at the intersection of financial services and analytics. The BFSI industry is a key vertical and growth sector for Arria, and we’re excited to have Mark lead this effort,” said Arria CEO Sharon Daniels.

“A great case study showcasing Arria’s capabilities is with BNY Mellon’s Data and Analytics Solutions. Combining our technology with BNY Mellon Data and Analytics Solutions accelerates and simplifies analysis across portfolio data management, risk analysis, performance measurement, wealth management reporting, and more. Arria’s natural language AI generates automated insights and narratives in plain, easy-to-understand language, helping our clients make better informed decisions, faster,” added Daniels.

Goodey will take part in several upcoming panels to discuss how NLG will shape investment analytics in 2022. Events include:

• InvestOps (March 28-30, Tampa)
• Meetup – NLG (April 27, London)
• TSAM London (June 16)
• TSAM Toronto (September 7)
• TSAM East Coast (October 6, NYC)
• TSAM ESG (November 2, London)
• iPARM (November 21, Sydney)

Goodey joins Arria from BNY Mellon’s Data & Analytics Solutions where he worked to establish Eagle Performance as a leader in investment performance analytics. Prior to BNY Mellon, Goodey led teams at JP Morgan Asset Management, Aviva Investors and F&C Asset Management, specializing in market risk and investment performance. He was also a prior member of several organizations and governing bodies that include UK Investment Performance Committee (UKIPC); Performance Measurement and Client Reporting Review; The Journal of Performance Measurement; Performance Measurement Networking Group; and Barclays Capital Index Advisory Council. He was the co-founder of www.i-performance-analysis.com.

About Arria NLG

Arria is the world’s leading provider of artificial intelligence (AI) software that instantly transforms structured data into natural language narratives leveraging natural language generation (NLG), natural language understanding (NLU), natural language processing (NLP) and machine learning. Arria software replicates the human process of expertly analyzing and communicating data insights. Arria dynamically turns volumes of data into written or spoken narratives at machine speed and on a massive scale. Arria provides pre-built out-of-the-box NLG apps as well as the ability to build and customize projects, and offers solutions across multiple industry verticals.

Learn more at www.arria.com.

Contacts

Media:
BackBay Communications

arria@backbaycommunications.com

Company:
Summer Flynn

summer.flynn@arria.com