Blue Shield of California Reports Strong Financial Ratings

The country's major credit rating agencies have reaffirmed Blue Shield of California's financial stability, with strong financial ratings, Blue Shield announced today. A.M. Best awarded California Physicians' Service d/b/a Blue Shield of California an A (Excellent) rating, and Standard & Poor's affirmed Blue Shield of California's A rating with a stable outlook.

This is the third straight year that Blue Shield has received these ratings from the two major agencies.A.M. Best's rating reflects Blue Shield's favorable earnings, strong capitalization as a result of good operating performance, and legacy modernization initiative, which is expected to add scale and improve efficiencies.

Standard & Poor's noted Blue Shield on the strength of its provider network, brand name and diverse product portfolio. Other strengths cited include Blue Shield's operating performance through good cost management, strong capitalization and conservative balance sheet.

"We are proud of the many factors that contribute to Blue Shield's financial strength," said Heidi Kunz, executive vice president and chief financial officer. "Our operational improvements, broad provider network and product diversity make it easier for our members to obtain quality health care at competitive rates."

A.M. Best also awarded subsidiaries, Blue Shield of California Life & Health Insurance Company and CareAmerica Life Insurance Company A- (Excellent) ratings.

From: Insurance News Net (www.insurancenewsnet.com)