AM {Best|Finest} Affirms Credit {Ratings|Scores|Rankings} of CVS Health Corporation’s Aetna Subsidiaries – {Business|Company|Service|Organization} Wire

OLDWICK, N.J.–( {BUSINESS|COMPANIES|SERVICES|ORGANIZATIONS} WIRE)– AM {Best|Finest} {has|has actually} {affirmed|verified} the Financial Strength {Rating|Score|Ranking} (FSR) of A({Excellent|Outstanding|Exceptional} )and the Long-Term {Issuer|Company|Provider} Credit {Ratings|Scores|Rankings}(Long-Term ICR )of “a”of Aetna Life {Insurance|Insurance Coverage} {Company|Business} (ALIC)(Hartford, CT )and the other {operating|running} entities of Aetna Inc. (Aetna) that are now {wholly|completely|entirely} owned subsidiaries of CVS Health Corporation(CVS Health)[ NYSE: CVS] These entities {include|consist of} & the members of Aetna Health & Life Group. {Concurrently|Simultaneously}, AM {Best|Finest} {has|has actually} {affirmed|verified} the FSR of A-({Excellent|Outstanding|Exceptional} )and the Long-Term ICR of “a-” Aetna {Insurance Company|Insurance Provider|Insurer} Limited (AICL) ({United Kingdom|UK}). The outlook of these Credit {Ratings|Scores|Rankings} ({ratings|scores|rankings}) is {stable|steady}. Please see {below|listed below} for {a detailed|a comprehensive|an in-depth} listing of the {companies|business}.

AM {Best|Finest} {also|likewise} {has|has actually} {affirmed|verified} the FSR of A ({Excellent|Outstanding|Exceptional}) and the Long-Term ICRs of “a” of Texas Health + Aetna {Health Insurance|Medical Insurance} {Company|Business} (Arlington, TX), {as well as|in addition to|along with} Texas Health + Aetna {Health Plan|Health Insurance}, Inc., (Arlington, TX) ({collectively|jointly} {referred to|described} as Texas Health Aetna), and Allina Health and Aetna {Insurance Company|Insurance Provider|Insurer} (St. Louis Park, MN), all of which are joint {ventures|endeavors} with subsidiaries of Aetna Inc. The outlook of these {ratings|scores|rankings} is {stable|steady}.

{{Lastly|Finally|Last but not least}, AM {Best|Finest} {has|has actually} {assigned|designated|appointed} an FSR of A ({Excellent|Outstanding|Exceptional}) and a Long-Term ICR of “a” to Accendo {Insurance Company|Insurance Provider|Insurer} (Accendo) (West Valley City, UT).|AM {Best|Finest} {has|has actually} {assigned|designated|appointed} an FSR of A ({Excellent|Outstanding|Exceptional}) and a Long-Term ICR of “a” to Accendo {Insurance|Insurance Coverage} {Company|Business} (Accendo) (West Valley City, UT).} Accendo is {a newly|a recently|a freshly} {added|included} member to the Aetna Health & & Life Group. The outlook {assigned|designated|appointed} to these {ratings|scores|rankings} is {stable|steady}. Accendo, {licensed|certified|accredited} in 50 states, {has|has actually} {assumed|presumed} Medicare Part D premium from an affiliate under CVS Health; {however|nevertheless}, the {company|business} {recently|just recently} {started|began} {writing|composing} direct Medicare Supplement {business|company|service|organization} in {multiple|several|numerous} states. {The business|Business} {written|composed} by Accendo targets the senior {demographic|market|group}, and the {company|business} {expects|anticipates} {additional|extra} complementary life {insurance|insurance coverage} {products|items} to be {offered|provided|used} {along with|together with|in addition to} {traditional|conventional|standard} Medicare Supplement {insurance|insurance coverage} {products|items}.

{The majority of|Most of} Aetna’s operating entities {are part of|belong to|become part of} Aetna Health & & Life Group. The {ratings|scores|rankings} of Aetna Health & & Life Group {reflect|show} its balance sheet strength, which AM {Best|Finest} {categorizes|classifies} as {very|extremely|really} strong, {as well as|in addition to|along with} its strong operating {performance|efficiency}, {favorable|beneficial} {business|company|service|organization} profile and {appropriate|suitable|proper} {enterprise|business} {risk|danger|threat} management (ERM).

The {ratings|scores|rankings} {also|likewise} {reflect|show} Aetna Health & & Life Group’s {very|extremely|really} strong level of risk-adjusted capitalization, which is driven by strong operating {performance|efficiency}. {{However|Nevertheless}, this is {offset|balanced out} by dividend payments, which {have|have actually} {exceeded|surpassed|gone beyond} $2 billion in each of the {past|previous} {three|3} years as the entities {have|have actually} {distributed|dispersed} {a larger|a bigger} {percentage|portion} of {earnings|profits|incomes|revenues} as dividends {compared with|compared to} {prior|previous} {periods|durations}.|This is {offset|balanced out} by dividend payments, which {have|have actually} {exceeded|surpassed|gone beyond} $2 billion in each of the {past|previous} {three|3} years as the entities {have|have actually} {distributed|dispersed} {a larger|a bigger} {percentage|portion} of {earnings|profits|incomes|revenues} as dividends compared with {prior|previous} {periods|durations}.} These {higher|greater} dividends followed the sale of life and {disability|impairment|special needs} {business|company|service|organization} in 2017, {as well as|in addition to|along with} lower {commercial|industrial|business} premium due to {exit|leave} from {individual|private|specific} exchange market. The lead {company|business}, ALIC, {has|has actually} reported {a decline|a decrease} in risk-based capital to under 200% {company|business} action level; {however|nevertheless}, the {company|business} has {a planned|an organized|a scheduled} {strategy|technique|method} to increase this above 200% by 2020 and {maintain|preserve|keep} this level.

AM {Best|Finest} {considers|thinks about} the group’s operating {performance|efficiency} to be strong, with return on equity {measures|steps|procedures} {annually|yearly|every year|each year} at or {exceeding|surpassing|going beyond} 25% with underwriting {income|earnings} that {has|has actually} been {greater|higher} than $2 billion {annually|yearly|every year|each year} {since|because|considering that|given that} the acquisition by {parent|moms and dad} {company|business} CVS Health was {finalized|completed|settled} in 2018. Aetna Health & & Life Group reported strong {growth|development} in net premiums in 2019, {partially|partly} {attributed to|credited to} {consistent|constant} double-digit {growth|development} in the Medicare {Advantage|Benefit} {line of business|line of work|industry}. {{Furthermore|Additionally|Moreover|In Addition}, SilverScript {Insurance Company|Insurance Provider|Insurer}, a member of the Aetna Health & & Life Group, {remains|stays} the leading stand-alone Medicare Part D {plan|strategy} in the United States, {based on|based upon} market share.|SilverScript {Insurance|Insurance Coverage} {Company|Business}, a member of the Aetna Health & & Life Group, {remains|stays} the leading stand-alone Medicare Part D {plan|strategy} in the United States, based on market share.} Through {nine|9} months ended Sept. 30, 2020 and {similar|comparable} to {industry|market} {trends|patterns}, CVS’ {Health Care|Healthcare} {Benefits|Advantages} {segment|section|sector} {has|has actually} reported lower medical {benefit|advantage} ratios {attributed to|credited to} the {decline|decrease} in {utilization|usage} {during|throughout} the {first|very first} half of 2020 as {elective|optional} {procedures|treatments} were {delayed|postponed} and the {health care|healthcare} {providers|service providers|companies|suppliers} {focused on|concentrated on} the COVID-19 pandemic. This {decline|decrease} {contributed to|added to} {very|extremely|really} strong {earnings|profits|incomes|revenues} through {the end|completion} of the {third|3rd} quarter; {however|nevertheless}, the {company|business} reported an uptick in {utilization|usage} in the {third|3rd} quarter to more {normal|typical|regular} levels due to increase in {elective|optional} {procedures|treatments} and {emergency|emergency situation} care {outside of|beyond} COVID-19 {hot spots|locations}.

Aetna {is one of|is among} the {top|leading} {three|3} U.S. health {insurers|insurance providers|insurance companies} in {terms of|regards to} medical {membership|subscription}, which {has|has actually} increased to 23.3 million {individuals|people} for {commercial|industrial|business}, Medicare and Medicaid {products|items}. Aetna’s Medicare {Advantage|Benefit} {membership|subscription} {growth|development} {has|has actually} {outpaced|surpassed|exceeded|outmatched} the {industry|market} over the {past|previous} {five|5} years, moving Aetna to the number {three|3} {insurer|insurance provider|insurance company} from the {fifth|5th} position in the Medicare {Advantage|Benefit} market. {As of|Since} Sept. 30, 2020, Aetna’s Medicare {Advantage|Benefit} members {are in|remain in} {plans|strategies} with a Star {rating|score|ranking} of 4.0 or {higher|greater}, {exceeding|surpassing|going beyond} peers and the {industry|market} average. The {company|business} {also|likewise} {has|has actually} {recently|just recently} reported strong {membership|subscription} {growth|development} in Medicaid {managed|handled} care {business|company|service|organization}, which is due in part to the COVID-19 pandemic and the {rise|increase} in the {unemployment|joblessness} rate as {businesses|companies|services|organizations} {have|have actually} laid off or furloughed their {workforces|labor forces}. The rate {has|has actually} {stayed|remained} {persistently|constantly} high {since|because|considering that|given that} the {outbreak|break out} of the coronavirus. {Similar|Comparable} to {industry|market} {trends|patterns}, Aetna {has|has actually} seen {consistent|constant} {membership|subscription} {decline|decrease} in its {commercial|industrial} {business|company|service|organization}.

The {ratings|scores|rankings} of Aetna Health & & Life Group {reflect|show} high {financial|monetary} {leverage|take advantage of|utilize} and goodwill at the {ultimate|supreme} {parent|moms and dad}, CVS Health. Financial {leverage|take advantage of|utilize} at the end of third-quarter 2020 was {approximately|roughly|around} 49%. While AM {Best|Finest} {considers|thinks about} that to be high, it {remains|stays} lower than year-end 2019 as the CVS Health {organization|company} is {focused on|concentrated on} deleveraging. The execution {risk|danger|threat} {related|associated} to the Aetna-CVS Health merger {has|has actually} {declined|decreased} over the {past|previous} year, as {many|numerous|lots of} {aspects|elements} of the management of Aetna’s {legacy|tradition} {business|company|service|organization} is on track and following the {transformation|change|improvement} {plans|prepares} {outlined|described|detailed|laid out} by management. {{However|Nevertheless}, while CVS Health {stated|specified|mentioned} its {intention|objective|intent} to {maintain|preserve|keep} the capitalization level at the {insurance|insurance coverage} entities in aggregate at the NAIC’s {company|business} action level of 275%, {actual|real} risk-based capital at year-end 2019 was lower than target and the {company|business}’s capital {plan|strategy} now {includes|consists of} increasing its risk-based capital ratio in 2020.|While CVS Health {stated|specified|mentioned} its {intention|objective|intent} to {maintain|preserve|keep} the capitalization level at the {insurance|insurance coverage} entities in aggregate at the NAIC’s {company|business} action level of 275%, {actual|real} risk-based capital at year-end 2019 was lower than target and the {company|business}’s capital {plan|strategy} now {includes|consists of} increasing its risk-based capital ratio in 2020.} CVS Health is doing this while keeping to its {accelerated|sped up} deleveraging {plan|strategy} through robust operating {earnings|profits|incomes|revenues} at the {insurance|insurance coverage} entities, strong {cash|money} {flows|streams} from operations and suspension of its share {repurchase|redeemed|bought} program. CVS Health is {expected|anticipated} to play {a major part|a huge part} in the {distribution|circulation} of the COVID-19 vaccines in {long-term|long-lasting} care {facilities|centers}, as {an official|a main} COVID-19 Vaccination Program {Provider|Service Provider|Company|Supplier}.

The {ratings|scores|rankings} of AICL {reflect|show} its balance sheet strength, which AM {Best|Finest} {categorizes|classifies} as {very|extremely|really} strong, {as well as|in addition to|along with} its {marginal|limited|minimal} operating {performance|efficiency}, {limited|restricted|minimal} {business|company|service|organization} profile and {appropriate|suitable|proper} ERM. {{Furthermore|Additionally|Moreover|In addition}, the {ratings|scores|rankings} of AICL {factor in|consider} {rating|score|ranking} {enhancement|improvement} from the Aetna {organization|company}.|The {ratings|scores|rankings} of AICL {factor|element|aspect} in {rating|score|ranking} {enhancement|improvement} from the Aetna {organization|company}.} AICL {has|has actually} {benefited from|taken advantage of|gained from} capital injections and the transfer of {international|worldwide|global} {business|company|service|organization} from the {wider|larger|broader} group.

The {ratings|scores|rankings} of Allina Health and Aetna {Insurance Company|Insurance provider|Insurer} {reflect|show} its balance sheet strength, which AM {Best|Finest} {categorizes|classifies} as strong, {as well as|in addition to|along with} its {marginal|limited|minimal} operating {performance|efficiency}, {limited|restricted|minimal} {business|company|service|organization} profile and {appropriate|suitable|proper} ERM. The {ratings|scores|rankings} {include|consist of} the {enhancement|improvement} from the Aetna {organization|company}.

The {ratings|scores|rankings} of Texas Health Aetna {reflect|show} its balance sheet strength, which AM {Best|Finest} {categorizes|classifies} as {very|extremely|really} strong, {as well as|in addition to|along with} its {adequate|sufficient|appropriate} operating {performance|efficiency}, {limited|restricted|minimal} {business|company|service|organization} profile and {appropriate|suitable|proper} ERM. The {ratings|scores|rankings} {include|consist of} the {enhancement|improvement} from the Aetna {organization|company}.

The FSR of A ({Excellent|Outstanding|Exceptional}) and the Long-Term ICRs of “a” {have|have actually} been {affirmed|verified} with {a stable|a steady} outlook for the following members of Aetna Health & & Life Group:

• Aetna Life {Insurance|Insurance Coverage} {Company|Business}
• Aetna Health and Life {Insurance|Insurance Coverage} {Company|Business}
• Aetna Life & & Casualty (Bermuda) Ltd.
• . Aetna Health Inc. (a Connecticut corporation)
• Aetna Health Inc. (a Florida corporation)
• Aetna Health Inc. (a Georgia corporation)
• Aetna Health Inc. (a Louisiana corporation)
• Aetna Health Inc. (a New Jersey corporation)
• Aetna Health Inc. ({a New York|a New york city} corporation)
• Aetna Health Inc. (a Maine Corporation)
• Aetna Health Inc. (a Pennsylvania corporation)
• Aetna Health Inc. (a Texas corporation)
• Aetna {Health Insurance|Medical Insurance} {Company|Business}
• Aetna {Health Insurance|Medical Insurance} {Company|Business} of {New York|New York City}
• Aetna Health of California Inc.
• . Aetna Health of Iowa, Inc.
• . Aetna Health of Utah, Inc.
• . Aetna Dental of California Inc.
• . Aetna Dental Inc. (a New Jersey corporation)
• Aetna Dental Inc. (a Texas corporation)
• American Continental {Insurance Company|Insurance Provider|Insurer}
• Continental Life {Insurance|Insurance Coverage} {Company|Business} of Brentwood, Tennessee
• Coventry Health and Life {Insurance|Insurance Coverage} {Company|Business}
• Aetna Better Health of Michigan, Inc.
• . Aetna Better Health of Missouri, LLC
• Coventry {Health Care|Healthcare} of Illinois, Inc.
• . Coventry {Health Care|Healthcare} of Kansas, Inc.
• . Coventry {Health Care|Healthcare} of Florida, Inc.
• . Coventry {Health Care|Healthcare} of Missouri, Inc.
• . Coventry {Health Care|Healthcare} of Nebraska, Inc.
• . Coventry {Health Care|Healthcare} of Virginia, Inc.
• . Coventry {Health Care|Healthcare} of West Virginia, Inc.
• . {First Health Life & & {Health Insurance|Medical Insurance} {Company|Business}
• | Health Life & & Health {Insurance|Insurance Coverage} {Company|Business}
• } HealthAssurance Pennsylvania, Inc.
• . SilverScript {Insurance Company|Insurance Provider|Insurer}

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