Standard&Poor's Ratings Services' insurer financial strength rating on Noridian Mutual Insurance Co., which does business as Blue Cross Blue Shield of North Dakota (Noridian), reflects the company's dominance of the North Dakota health-insurance market, very good risk-adjusted capitalization, and strong liquidity. The company's weak operating earnings, concentration in the North Dakota market, and the challenging regulatory environment in which it operates offset the positive factors. Noridian has established a strong competitive position in its core market and is the dominant writer and administrator of health-insurance products and plans in North Dakota. It has more than 80% of the insured market, with approximately 462,000 members as of June 30, 2011, a 1.2% increase from year-end 2010. We believe that
