The insurer financial strength rating on Highmark Inc. (Highmark) reflects Highmark's extremely strong capitalization, strong business profile, and strong earnings. Offsetting these positive factors are Highmark's limited growth opportunities in its primary operating regions. -- Extremely strong capitalization. Highmark has extremely strong capitalization, with a Standard&Poor's capital adequacy ratio of 232% as of year-end 2000. The company's statutory capital increased 10% in the first six months of 2001 to $2.2 billion. Highmark's capitalization has afforded it financial resources to support its growth strategy and other business-development activities. -- Strong business profile. Highmark is the largest Blue Cross Blue Shield plan in Pennsylvania, providing medical and hospital coverage to more than 4.9 million members throughout the state. Highmark's market
