S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actions after 5:30 p.m. ET will be included in the following day's roundup.
Life and health
S&P Global Ratings has upgraded its long-term financial strength and issuer credit ratings on Highmark Inc. to A from A-.
S&P said Highmark and its Blue-branded affiliates are the health insurance plans of Highmark Health, the parent company.
The rating agency views Highmark as a core subsidiary of the Highmark enterprise and hence its ratings are based on the group credit profile.
The outlook is stable, which reflects the agency's expectation that the company will sustain its market positions and profitability in all three business segments. Highmark's business segments include its health plan and its ancillary diversified business, and Alleghany Health Network.
Managed care
Moody's has placed Cigna Corp.'s debt ratings on review for downgrade, writing that its proposed acquisition of Express Scripts Holding Co. will result in substantial increase in financial leverage and reduce the company's overall financial flexibility.
The rating agency also placed the A1 insurance financial strength ratings of Cigna subsidiaries Connecticut General Life Insurance Co., Life Insurance Co. of North America and Cigna Health & Life Insurance Co. on review for downgrade.
The outlooks were changed to under review from stable.
Moody's said that although the transaction should modestly improve Cigna's strong risk-based capital level, it could also adversely impact the quality of capital.
The rating agency believes that the addition of Express Scripts will add meaningful diversity to Cigna's earnings, will add significant unregulated cash flows and will offer the potential for cost synergies.
However, Moody's is of the view that the insurer already has access to many of the capabilities offered by Express Scripts. Moody's also pointed out that Express Scripts is losing its largest customer, Anthem Inc., which accounted for about 18% of its revenue in the first quarter of 2017. Express Scripts is not just losing Anthem as a customer, but also facing a $15 billion lawsuit from the insurer, the rating agency noted.
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A.M. Best has assigned a financial strength rating of A (Excellent) and a long-term issuer credit rating of "a" to Allina Health and Aetna Insurance Co. Inc.
The ratings reflect Allina Health Aetna's very strong balance sheet strength, its marginal operating performance, limited business profile and appropriate enterprise risk management, A.M. Best said.
The ratings also include support of the parent organizations, Aetna Inc. and Allina Health System Inc., the agency added.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
