Credit quality for the U.S. health insurance sector is strong with limited potential for change in the next 12 months based on sector fundamentals.
In Standard & Poor’s Ratings Services’ opinion, most rated health insurers remain generally sound financially as they position themselves for reform-driven change in the marketplace.
Overall, we believe our current ratings reflect the sector’s capacity to withstand a period of moderate strain that may emerge in connection with cyclical factors and health care reform.
Our opinion of the sector’s credit quality is that underlying business conditions (such as growth and retention opportunities and access to capital) are very good, and health insurers’ financial fundamentals remain relatively strong. Industry risk remains high but has moderated somewhat.