Following the annual review of financial results, the Financial Strength Ratings (FSR) of HM Life Insurance Company and HM Life Insurance Company of New York were upgraded to A (Excellent) by A.M. Best Company. The outlook for the ratings remains stable.
The companies of HM Insurance Group (HM) were reviewed as part of the evaluation of Highmark Inc., of which HM is a diversified business. According to A.M. Best, the ratings for the companies involved reflect Highmark Group’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
“The A rating is a significant achievement for our company,” Tom Doran, president, HM Insurance Group, said. “The stop loss industry is facing many challenges – especially with the growth in high-dollar claims – so the acknowledgement by A.M. Best that we are financially strong and performing well is a testament to our focus on achieving stable, predictable results in the current market.”
According to A.M. Best Company, rating upgrades to HM Life Insurance Company and HM Life Insurance Company of New York are based on a combination of risk-adjusted capitalization being measured at the strongest level and the long-term strategy to grow stop loss business following the workers’ compensation business divestiture in 2016. A.M. Best also noted the strategic importance HM has placed on cross-selling stop loss to Highmark’s large administrative services only groups. A.M. Best found that HM’s near-term losses were driven by an increased claims experience in early 2017 and that HM has garnered the rate actions necessary to reverse the adverse earnings pressure favorably, with near-term results also tracking favorably.
About HM Insurance Group
HM Insurance Group (HM) works to protect businesses from the potential financial risk associated with catastrophic health care costs. The company provides reinsurance solutions that address risk situations confronting employers, providers and payers. A recognized leader in employer stop loss, HM also offers managed care reinsurance nationally.
HM Life Insurance Company and HM Life Insurance Company of New York are rated “A” (Excellent) by A.M. Best Company, one of the country’s oldest and most respected rating agencies. HM also consistently has been named to Ward’s 50 life and health companies based on financial performance. Through its insurance companies, HM Insurance Group holds insurance licenses in 50 states and the District of Columbia and maintains sales offices across the country.