A.M. Best Places Rating of Exclusive Healthcare, Inc. Under Review
OLDWICK, N.J. - A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) of Exclusive Healthcare, Inc. (EHI) (Nebraska) under review with negative implications based on Mutual of Omaha’s announcement that it plans to exit the group health line.
Pending regulatory and other customary approvals, Coventry Health Care, Inc. (Coventry) (Bethesda, MD) [NYSE: CVH] will acquire Mutual of Omaha’s Nebraska and Iowa employer based group health insurance business as well as its Federal Employees Health Benefits business.
As part of the proposed transaction, Coventry will acquire EHI, which is currently a direct subsidiary of Mutual of Omaha Insurance Company (MOIC) (Nebraska). The post-close FSR of EHI will be no higher than the FSR of the core subsidiaries of Coventry, which currently have an FSR of B++ (Good).
Although this is a significant transaction for Coventry’s Commercial Business Division, the ratings of Coventry and its members remain unchanged. Additionally, Mutual of Omaha remains fully committed to the employer market, offering employer-based life, disability, dental and supplemental health insurance; retirement plans; TPA stop loss; and voluntary insurance products. As such, the ratings of MOIC and its life/health affiliates also remain unchanged.
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