OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a” of Vision Service Plan (VSP) (Rancho Cordova, CA) and its subsidiaries. The outlook for all the above ratings is stable.
Additionally, A.M. Best has assigned an FSR of A (Excellent) and an ICR of “a” to VSP’s other subsidiary, Vision Service Plan of Illinois, NFP (VSP IL) (Chicago, IL). The outlook assigned to both ratings is stable. (Please see below for a detailed listing of the companies.)
VSP possesses a significant share of the vision care benefits market in the United States due to its strong brand recognition, wide-array of products, extensive provider network and reputation for superior customer service. The organization’s overall revenue has grown in recent years primarily due to new sales and growth within its existing customer base, which has been supplemented by key acquisitions. Increasing net income during this period has strengthened both absolute and risk-adjusted capital levels. In addition to providing vision care benefits, VSP also derives non-regulated revenue from its three non-insurance business segments—eyewear, optics and practice management software.
The ratings assigned to VSP IL reflect its substantial growth in premium revenue, favorable earnings trend and improvements in capitalization since its inception in January 2008.
A.M. Best believes VSP is well-positioned at its current ratings. Future negative rating actions could occur if the organization’s risk-adjusted capital materially decreases, operating results decline considerably and/or financial leverage materially exceeds the guidelines for its current ratings.
The FSR of A (Excellent) and ICRs of “a” have been affirmed for Vision Service Plan and its following subsidiaries:
- Vision Service Plan Insurance Company (CT)
- Vision Service Plan Insurance Company (MO)
- Mid-Atlantic Vision Service Plan Inc.
- Eastern Vision Service Plan Inc.
- Vision Service Plan (OH)
- Vision Service Plan (WA)
- Indiana Vision Services Inc.
- Massachusetts Vision Service Plan
- Vision Services Plan Inc. Oklahoma
- Alaska Vision Services Inc.
- Vision Service Plan Inc. (NV)
- Vision Service Plan of Idaho Inc.
- Wisconsin Vision Service Plan Inc.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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