Strong competitive position benefits from well-recognized Blue Cross Blue Shield (BCBS) branded health plans and ancillary diversified businesses Market leadership spans a number of core operating markets, which could leave the organization more exposed to regulatory policy and macroeconomic changes Volatile operating performance driven by margin compression associated with Affordable Care Act (ACA)-related membership lines Well-diversified operations encompassing a number of ancillary offerings Extremely strong capitalization, measuring both clinical assets and diversified business unit risk characteristics Higher risk associated with continued strategic investments in AHN could hamper prospective net asset accretion Outsize post-retirement benefit and pension obligations associated with the consolidated enterprise Well-diversified investment portfolio consisting of high-credit-quality assets Adequate and improving financial flexibility, with increasing earnings and decreasing leverage
