AM Best revises issuer credit rating outlook to stable for Friday Health Plans of Colorado, Inc.

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook to stable from positive for the issuer’s long-term credit rating (long-term ICR) and confirmed the financial strength rating (FSR) of C (low) and the long-term ICR of Friday’s “ccc” (low) Colorado Health Plans, Inc. (Colorado Friday Health Plans) (Alamosa, CO). The outlook for the FSR is stable.

Credit ratings reflect the strength of Friday Health Plans of Colorado’s balance sheet, which AM Best considers very weak, as well as its marginal operating performance, limited business profile, and poor management of enterprise risk.

The revised long-term outlook for the ICR to stable from positive for Friday Health Plans of Colorado follows the deterioration of capital in the third quarter of 2021 due to underwriting and net losses. AM Best had anticipated that absolute and risk-adjusted capital would improve through capital growth and the execution of a reinsurance agreement with AXA SA; however, while the reinsurance arrangement provided some capital relief, the decline in capital is less than expected.

AM Best will continue to monitor the financial results and will have further discussions with the company’s management team regarding its investment plan.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this post, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

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

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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