The insurer financial strength rating on Highmark Inc. (d/b/a Highmark BCBS and Highmark Blue Shield) (Highmark) is based on extremely strong capitalization, market leadership in western Pennsylvania, and very strong liquidity, somewhat offset by its good-but-reduced earnings and diminished business position in central Pennsylvania. Good but reduced earnings. Highmark's earnings profile is good based on a Standard&Poor's Ratings Services earnings adequacy ratio of 142% at year-end 2002, which was down from a strong 184% in 2001. Pretax earnings have declined to a consolidated pretax loss of $128.7 million in 2002 from gains of $376.6 million in 2000 and $210.5 million in 2001. Consolidated pretax loss of $36.9 million for the six months ended June 30, 2003, is similarly
