How healthy is your insurer?

al3 · 01-30-2007, 11:17 PM

http://www.thestreet.com/_email/fund.../10335199.html

Great article on the financial health of the largest insurance companies. See the table on page 2.

Al
http://www.InsuranceSolutions123.com

somarco · 01-31-2007, 06:43 AM

Financial ratings are virtually meaningless when it comes to health insurers. I would be more concerned with market tenure & share than so-called financial ratings.

Someone like Aetna is big enough and has been in the health insurance industry for some time. Same for Humana.

Both of those carriers concentrate more in the group market and I expect them to remain strong players in that segment.

But neither have a real strong hold in the individual market, although Humana may have a larger concentration in a few states where they have been around for a while.

KP has been around for a long time and has done well in most markets, although they have retreated from a few states, mostly in the northeast.

The smaller Blues have survived . . . at least until they are absorbed by the Anthem/Wellpoint machine.

I don't put a lot of stock in reports on health insurance carriers by financial eggheads who have no clue how the market works.

James · 01-31-2007, 08:54 AM

It would seem to me that UHC has made a lot of moves lately in gobbling up other companies. I can see how this could make some insecure about their future investment value. Humana? I don't hear much good about them but that is nothing more than gossip, yet I do know they laid off quite a few agents after their buildup for MA products and their Walmart contract. I'm sure Walmart got the better end of that contract.

healthagent · 01-31-2007, 08:58 AM

In the individual health market what happens more than an entire company going under is a carrier pulling out of a specific state. There are numerous examples of this and it's never predicated by the company's financial rating.

Does anyone know AMS's financial ratings before they pulled out?

aufan · 01-31-2007, 05:02 PM

I'm sure Walmart got the better end of that contract.

I can assure you that Wal Mart does nothing unless they are a big winner.

somarco · 01-31-2007, 05:13 PM

AMS was in, then they were out, then they were in. Never a consistent player.

Others were plagued with that as well.

CGI, CRL, Celtic, Humana.

Last year in GA Humana was writing a fair amount of business. Not as much as Blue or Time, but quite a bit (for them at least). This year they are giving it all back.

I believe AMS was an A- but don't quote me on that.