A.M. Best Withdraws Ratings of Lifetime Healthcare, Inc.'s Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit ratings of “bbb” of Lifetime Healthcare, Inc.’s (Lifetime) primary insurance subsidiaries: Excellus Health Plan, Inc. (Excellus), MedAmerica Insurance Company (MedAmerica) (Pittsburgh, PA), MedAmerica Insurance Company of New York (MedAmerica NY) and MedAmerica Insurance Company of Florida (MedAmerica FL) (Orlando, FL). The rating outlooks for all of the companies remain negative. All companies are domiciled in Rochester, NY, unless otherwise specified. Concurrently, A.M. Best has withdrawn the ratings of the companies upon management’s request to no longer participate in A.M. Best’s interactive rating process.

The ratings reflect Excellus’ strong market position in the central and upstate regions of New York as the state’s largest not-for-profit health insurer. The company has focused on operational improvements, reducing administrative expenses and initiatives to improve operating performance such as exiting unprofitable markets and taking corrective pricing actions, as needed, which has resulted in earnings improvement through the third quarter 2015.

Offsetting factors include the declining trend of risk-adjusted capitalization that has occurred over the past few years. Furthermore, Lifetime’s long-term care subsidiaries, MedAmerica companies, continue to report statutory losses driven by the block’s poor performance. As a result, in early 2016, the organization made a decision to cease writing any new business in the MedAmerica companies and to run-off the existing business comprised primarily of long-term care policies. A.M. Best notes that Excellus provides implicit and explicit financial and operating support to these subsidiaries. During 2015, the MedAmerica companies were required to strengthen reserves and Excellus infused the necessary capital to cover the reserves. A.M. Best believes further capital support will be needed for these long-term care companies going forward.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best
Jeffrey Lane, 908-439-2200, ext. 5567
Managing Senior Financial Analyst
[email protected]
or
Sally Rosen, 908-439-2200, ext. 5280
Vice President
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company, Inc.

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