AP NEWS

AM Best Places Credit Ratings of QCA Health Plan, Inc. Under Review with Positive Implications

January 16, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Jan 16, 2019--AM Best has placed under review with positive implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” of QCA Health Plan, Inc. (QCA) (Little Rock, AR). The Credit Rating (rating) action follows the announcement that QCA has entered into a definitive agreement to be acquired by Centene Corporation (Centene), subject to regulatory approval. The transaction is expected to close in early 2019.

The under review with positive implications status reflects the potential financial and operational benefits that QCA can realize if it becomes a subsidiary of Centene, one of the leading managed care providers for the low income population in the United States. The QCA transaction will be in line with Centene’s strategy to expand through small to midsize acquisitions. Centene has more-than-sufficient financial flexibility and a history of supporting its subsidiaries if needed. Through nine months of 2018, Centene recorded shareholders’ equity growth and improved its financial leverage ratio.

QCA has reported improved earnings due to rate increases and lower utilization in the individual exchange business over the past two years.

The ratings will remain under review pending the completion of the transaction and AM Best’s assessment of Centene’s future operating plans for QCA.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190116005782/en/

CONTACT: Saurin Parikh

Financial Analyst

+1 908 439 2200, ext. 5030

saurin.parikh@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Doniella Pliss

Director

+1 908 439 2200, ext. 5104

doniella.pliss@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA ARKANSAS NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 01/16/2019 03:44 PM/DISC: 01/16/2019 03:44 PM

http://www.businesswire.com/news/home/20190116005782/en

AP RADIO
Update hourly