A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating (ICR) of "a-" to UPMC Work Alliance, Inc. (Pittsburgh, PA).Additionally, A.M. Best has removed from under review with developing implications and affirmed the FSR of A- (Excellent) and the ICR of "a-" of UPMC Health Benefits, Inc. (Pittsburgh, PA). The two companies primarily offer fully insured workers' compensation products and are collectively referred to as UPMC Workers' Compensation Group. The outlook assigned to all ratings is stable.
The rating actions reflect the group's adequate risk-adjusted capitalization and implicit and explicit support provided by its ultimate parent, University of Pittsburgh Medical Center (UPMC), a nonprofit corporation headquartered in Pittsburgh and one of the leading integrated delivery and financial systems in the United States.
Offsetting these positive factors are the execution risks associated with the group's aggressive growth in workers' compensation since 2010, variable underwriting performance, as well as the group's relatively narrow product focus and geographic concentration in Pennsylvania exposing it to changes in local regulatory, economic and competitive environments.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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christopher.sharkey@ambest.com
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Michael Lagomarsino, CFA, FRM, 908-439-2200, ext. 5810
Vice President
michael.lagomarsino@ambest.com
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Jim Peavy, (908) 439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
