Research Update: Blue Cross Blue Shield of North Dakota 'A-' Ratings Affirmed Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). Our view on the capital of Blue Cross Blue Shield of North Dakota is unchanged under the revised capital adequacy criteria. We affirmed our 'A-' ratings on the company. The stable outlook reflects our expectation that the company will maintain its leading market position and excellent capital and earnings per our risk-based capital model. On March 25, 2024, S&P Global Ratings affirmed its 'A-' long-term issuer credit and financial strength ratings on Blue Cross Blue Shield of North Dakota (BCBSND). The outlook remains stable. The implementation of our revised criteria for analyzing insurers' risk-based capital does not lead to

...Key strengths Key risks Strong Blue Cross Blue Shield (BCBS) brand and dominant market presence in North Dakota. Single-state presence limits overall growth prospects. Diversified product offerings. Concentration in commercial business lines Very strong capital adequacy. Modest run-rate adjusted EBIT margin of 1%-3%....

Research Update