A.M. Best upgrades our group of companies to “A”
July 13, 2016
A.M. Best upgraded the financial strength rating and the issuer credit ratings for Delta Dental of California and Delta Dental Insurance Company to “A” (Excellent). In addition, the financial strength rating and issuer credit ratings for Delta Dental of Pennsylvania and its affiliate company, Delta Dental of New York, Inc., were upgraded to “A” (Excellent). The outlook for all ratings is “stable.”
A.M. Best said the rating actions for the four companies “reflect improved capitalization, an economic shift to a higher level of earnings and the execution of business expansion strategies.” It also noted growth trends in premium, capital and assets, as well as continued profitability over the past five years, as a result of “streamlining operations and making investments to modernize (its) information and technology infrastructure, which has improved efficiency, generated cost savings and raised market penetration in both insured and uninsured businesses.”
Partially offsetting these strengths, according to A.M. Best, are “the challenges in expanding to new geographies and the highly competitive business environment.” Competition ranges from large, full-line insurance companies to small third-party administrators, with increased competition “primarily in the mid-size to large group markets.”
For more information, please visit www.ambest.com.