Credit downgrade of AvMed no longer likely
Published: Friday, December 7, 2012 at 11:05 a.m.
Last Modified: Friday, December 7, 2012 at 11:05 a.m.
AvMed is no longer at imminent risk of a credit downgrade, though A.M. Best Co.’s outlook for the health insurer remains negative.
A.M. Best announced this week that AvMed is no longer under review with negative implications, meaning a downgrade is no longer likely in the near term.
The designation was included in a downgrade in December 2011 after AvMed reported a net loss of $43.6 million and a $54.1 million decline in capital and surplus through September 2011. A.M. Best dropped AvMed’s issuer credit rating from “bbb” to “bbb-” -- still considered investment grade -- and its financial strength rating from B++ to B+, which is still considered good. The under-review designation was dropped after AvMed reported improved operating results through September 2012, although it projects a modest net loss and decline in capital and surplus for 2012.
A.M. Best said in a news release that it believes AvMed is well-positioned, but a downgrade is likely if underwriting results fall below expectations, claim reserves become deficient or capital deteriorates further.
AvMed is headquartered in Miami with an office in Gainesville, home of parent company SantaFe HealthCare.