BestWeek: A.M. Best Study Benchmarks Provider Owned Health Plans

Business Wire, April 4, 2008

OLDWICK, N.J. -- A.M. Best Co.'s benchmarking study of 102 provider owned health plans found a strong correlation between the most profitable companies and those with strong risk-based capital (RBC) scores, according to a new special report featured in BestWeek U.S./Canada. Two-thirds of those in the top quartile for profitability also were in the top RBC quartile.

Also, in BestWeek Europe:

The European Commission's Solvency II Directive is expected to substantially increase regulatory capital requirements for most European insurers, although no extra capital is likely to be required for the market as a whole, according to a new A.M. Best special report.

Also, in BestWeek U.S./Canada:

Low interest rates, an apparent recession and persistent competition are placing increased pressure on group disability income insurers, according to a new A.M. Best special report.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of April 3 down 8.11% from a year ago. The composite index reflects the performance of 169 insurance stocks. The week's top stocks were Mitsui Sumitomo Insurance Group Holdings, Millea Holdings, Nipponkoa Insurance Co., Sompo Japan Insurance, and Aioi Insurance Co.

The bottom five stocks were Gainsco, Hyundai Marine & Fire Insurance Co., Dongbu Insurance Co., Humana, and Health Net.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.