AM Best Takes Various Credit Rating Actions on Elevance Health, Inc. and Most of Its Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of the core Blue Cross Blue Shield (BCBS)-branded insurance subsidiaries of Elevance Health, Inc. (Elevance) (Indianapolis, IN) [NYSE: ELV], as well as most of its non-Blue-branded subsidiaries. In addition, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICR to “a+” (Excellent) from “a-” (Excellent) of Wellpoint Life and Health Insurance Company and Wellpoint West Virginia, Inc. These companies collectively are referred to as Anthem Health. At the same time, AM Best has affirmed the Long-Term ICR of “bbb+” (Good), the Long- and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of Elevance and the Long-Term IR on the existing surplus notes of Anthem Insurance Companies, Inc. (Indianapolis, IN).

Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of WellPoint Insurance Services, Inc. (WISI) (Honolulu, HI). The outlook of these Credit Ratings (ratings) is stable.

Lastly, AM Best has removed from under review with positive implications and upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICR to “a” (Excellent) from “a-” (Excellent) of Granular Insurance Company (Granular) (Charleston, SC). The outlook assigned to these ratings is stable.

The ratings of Anthem Health reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). In addition, the ratings of Wellpoint Life and Health Insurance Company and Wellpoint West Virginia, Inc. were upgraded due to its strategic importance as medical and stop-loss entities in the organization.

Anthem Health’s rating affirmations reflect its very strong balance sheet strength assessment, which has been driven by the group’s favorable operating performance and strong cash flow trends. The group’s risk-adjusted capitalization is considered very strong, as measured by Best’s Capital Adequacy Ratio (BCAR). Furthermore, Anthem Health has continued to report consistent capital and surplus growth, driven by favorable net earnings, which has outpaced premium growth consistently and led to increased absolute and risk-adjusted capitalization. Anthem Health’s invested asset portfolio has been relatively conservative and mainly composed of investment grade fixed income securities, cash and short-term investments, as well as minor allocations to alternative invested assets.