A.M. Best has downgraded the ratings of Farmington-based health insurer ConnectiCare and its three fellow EmblemHealth subsidiaries for the second time this year.
The ratings provider on Wednesday assigned a long-term issuer credit rating (ICR) of “bb” to ConnectiCare, Health Insurance Plan of Greater New York, HIP Insurance Company of New York and Group Health Inc.
A long-term ICR represents the ratings provider’s opinion of an insurer’s ability to meet its ongoing senior financial obligations.
The subsidiaries had been under A.M. Best’s “review with negative implications” since Oct. 12, which signified a reasonable likelihood of a downgrade within six months.
That review status was removed Wednesday, when the downgrade was announced. Best also affirmed a “B” financial strength rating for the subsidiaries, which is considered fair.
Best said the downgrades reflect a decrease in capital at HIP as well as losses at Connecticare, which expects to lose more than $55 million in 2016.
In June, Best downgraded the EmblemHealth subsidiaries’ ICR from “bbb-” to “bb+” and their FSR from B+ to B, citing declining capital at HIP.
