BlueCross BlueShield of South Carolina receives highest rating

Blue Cross and Blue Shield of South Carolina and its wholly owned subsidiaries, BlueChoice HealthPlan of South Carolina Inc. and Companion Life Insurance Co., received a superior (A+) rating for financial strength and an issuer credit rating of “aa-” from A.M. Best Co.

A.M. Best also has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to InStil Health Insurance Co.

Concurrently, A.M. Best has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” for Companion Property & Casualty Group, which consists of Companion Property and Casualty Insurance Co. and its wholly owned subsidiaries, Companion Commercial Insurance Co. and Companion Specialty Insurance Co. (Specialty) (based in the District of Columbia). The outlook for all ratings is stable.

“An A+ is the highest rating you can get under the A.M. Best ratings, and we are one of just two companies in the nation that have this rating,” said BlueCross spokeswoman Elizabeth Hammond.

“We’ve maintained an A+ rating for at least 8 years. We are the only company that’s in every insurance market in the state and the only one with that rating. In this shaky economy, we consider this rating to be particularly important. It shows that we run our company responsibly and that we are stable and in a good financial position.”

BlueCross BlueShield is built around multiple specialty insurance companies and administrative subsidiaries. The company manages the largest provider network in South Carolina.

Broad administrative and service credentials have placed the organization among the nation’s leaders in the distribution of government programs, A.M. Best said in a statement.

BlueCross’ operational footprint is significantly larger than the confines of South Carolina. The company has stable operations evidenced by 20 consecutive years of profitability. Additionally, BlueChoice and Companion Life have strengthened their working relationship with BlueCross after making adjustments to the suite of products offered to members and affiliates. The overall organization has worked to diversify its income stream by balancing fee business versus risk business, A.M. Best said.

InStil Health has generated considerable revenue growth in the past four years, and its trajectory suggests that it will soon become a primary administrator of government programs. Revenue development has reached planned expectations and historical organizational trends. However, earnings are distinctly divergent to BlueCross and are lagging. The company has instituted corrective actions, and planned adjustments in its captive distribution force and administrative expenses should improve future underwriting performance, A.M. Best said.