OLDWICK, N.J., October 25 /CNW/ - A.M. Best Co. has affirmed the
financial strength rating (FSR) of B++ (Good) and assigned issuer credit
ratings (ICR) of "bbb+" to Summa Insurance Company and its subsidiary,
SummaCare, Inc. (both of Akron, OH). The outlook for all ratings is stable.
Both companies' ratings are driven by good risk-based capitalization,
demonstrated by a combined Best's Capital Adequacy Ratio score of 132% at
year-end 2006. A.M. Best does not expect future results to deviate
considerably from the current number, although growth initiatives are at the
forefront of each company's strategy.
Along with the support of their financially strong parent, Summa Health
System, the companies have consistently generated favorable underwriting
results and net income for the past three years, continuing through mid-2007.
A.M. Best believes year-end 2007 results to be even more advantageous, owing
to both companies' exceeding projections on almost all metrics through
mid-year 2007, including the commercial line of business, which reduced losses
by more than half.
Summa Health System benefits from both companies' revenue and earnings
growth and is committed to their support; thus, enhancing their ratings. The
companies provide revenue scale and diversification to the system, generating
one-third of Summa Health System's revenues, as well as increased payor mix
stability through members' utilization of Summa Health System facilities.
For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.
For further information:
For further information: A.M. Best Co. Analysts Eva Sverdlova,
908-439-2200, ext. 5733 email@example.com or Christian Miles, CPA,
908-439-2200, ext. 5026 firstname.lastname@example.org or Public Relations Jim
Peavy, 908-439-2200, ext. 5644 email@example.com or Rachelle Morrow,
908-439-2200, ext. 5378 firstname.lastname@example.org