AM Best Places Credit Ratings of Blue Cross Blue Shield of Vermont and Its Subsidiary Under Review With Developing Implications

AM Best Places Credit Ratings of Blue Cross Blue Shield of Vermont and Its Subsidiary Under Review With Developing Implications

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Blue Cross and Blue Shield of Vermont (BCBSVT) and its subsidiary, The Vermont Health Plan LLC. These companies are collectively known as Blue Cross and Blue Shield of VT Group (BCBSVT Group). Both companies are domiciled in Berlin, VT.

These Credit Rating (rating) actions are driven by the announcement of a formal affiliation between BCBSVT and Blue Cross Blue Shield of Michigan Mutual Insurance Company (BCBS MI). The ratings of BCBSVT have been placed under review with developing implications pending affiliation process and regulatory approvals, as well as AM Best’s discussion with management regarding potential synergies and any changes to strategic direction of the organization. Under the announced agreement, BCBS MI will become a sole corporate member of BCBSVT. Both plans are non-profit organizations and there is no movement of any funds between the companies as part of the transaction. BCBSVT may benefit from access to operational capabilities and tools of BCBS MI.

The ratings are expected to be removed from under review upon the close of the transactions and the completion of AM Best analysis.

This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Jon Housel
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Doniella Pliss
Director
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Al Slavin
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