S&P Affirms Companion Life Insurance's 'AA-' Ratings

Business Wire, Oct 27, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/23/98-- Standard & Poor's today affirmed its double-'A'-minus counterparty credit and financial strength ratings on Companion Life Insurance Co.

Companion Life is a wholly owned subsidiary of Blue Cross and Blue Shield of South Carolina. The rating is based on the financial strength of Companion Life, combined with the strategic importance of Companion Life to its parent, and explicit support provided by Blue Cross and Blue Shield of South Carolina.

The company is licensed in 40 states and the District of Columbia. The company's writings are concentrated in the southern region of the U.S. in 28 states. Companion Life's product mix is approximately 60% life and 40% accident and health, with 95% of total premiums written to the group marketplace.

Companion Life had total adjusted capital of $19.3 million at year-end 1997, up from $17.8 million in 1996. Moreover, the company has maintained a superior capital adequacy ratio, as measured by Standard & Poor's capital adequacy model. The company's operating performance has been stable for the past four years, with positive operating and net income. Pretax income in 1997 was $1.9 million and $1.9 million in 1996.

OUTLOOK/EXPECTATIONS: STABLE

Standard & Poor's expects Companion Life to continue to grow in key target markets and remain a strategically important part of Blue Cross and Blue Shield of South Carolina's overall operations. --CreditWire