72 Health Insurers Upgraded, 11 Downgraded

April 21, 2003
Aetna Health Inc., Blue Cross Blue Shield of Georgia, Inc., and Group Hospitalization & Medical Services, Inc. were among the 72 insurers upgraded by Weiss Ratings during its latest review of 494 HMOs and health insurers.

Eleven HMOs were downgraded.

Eleven insurers, including Coventry Health Care of Kansas, Inc., The Health Plan of the Upper Ohio Valley, Inc., and SCAN Health Plan, were downgraded by Weiss, the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

Aetna Health Inc., Uniondale, N.Y., was upgraded to B- (Good) from C+ (Fair) based on strong earnings during the past five years, enabling the company to maintain a healthy capital position. Since December 1997, aggregate earnings have totaled more than $268 million with net underwriting income contributing $254.8 million, or 95 percent, to the bottom line. The company's capital, deemed sufficient to cover an unexpected rise in claims, rose to $290.4 million at June 30, 2002 from $167.8 million at December 1997.

Blue Cross Blue Shield of Georgia, Inc. was upgraded to A- (Excellent) from B+ (Good) based on the company's consistent performance over time. Capital increased $121.9 million, or 70.4 percent, to $295 million at June 30, 2002 from $173.1 million at December 31, 2000. Strong profits contributed to the steady rise in capital with earnings of $44 million, $65.5 million, and $59.9 million reported in 2000, 2001, and during the first two quarters of 2002, respectively. The upgrade also reflects the financial strength of affiliates within the Wellpoint Health Networks, Inc. group of companies, of which Blue Cross Blue Shield of Georgia, Inc. is a part.

Group Hospitalization & Medical Services, Inc. (Washington, D.C.) (dba CareFirst BlueCross BlueShield) was upgraded to A- (Excellent) from B+ (Good) due to its ability to maintain a steady level of capital since 1997. Capital rose $126.2 million, or 84.3 percent, to $276.1 million at June 30, 2002 from $149.8 million at December 31, 1997. The company has reported positive net income for more than three years, with earnings of $34.8 million in 1999, $47 million in 2000, $46.2 million in 2001, and $18.7 million during the first six months of 2002. In addition, affiliates within the CareFirst, Inc. group are financially sound, with four of the six rated insurers receiving safety ratings in the "Good" or "Excellent" range.

Consumers needing more information on the financial safety of a specific company can purchase a rating and summary analysis for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800-289-9222.