Insurance rating agency A.M. Best Co. is giving a tentative thumbs up to the financial outlook for HealthNet of Connecticut Inc. and its three Northeast affiliates as they await their acquisition by UnitedHealth Group Inc.
Best said today it placed under review with positive implications the ratings of B+ (Good) and issuer credit ratings of “bbb-” on the four divisions of Health Net of the Northeast Inc.
Health Net-Northeast is a subsidiary of Health Net Inc., which in July agreed to sell it for about $510 million to Minnesota-based UnitedHealth, which has operations in Hartford.
Best said UnitedHealth’s relative financial strength compared to Health Net should benefit Health Net’s operations following the merger, which is due to close next July.
If the merger falls through, Best said its ratings for Health Net-Northeast will likely fall due to its lack of strategic importance to the parent.
Health Net-Northeast’s other divisions include: Health Net of New Jersey Inc.; Health Net of New York Inc.; and Health Net Insurance of New York Inc. The remaining ratings for Health Net and its other subsidiaries are unchanged, Best said.
