Weiss Rates Arkansas HMOs and Insurers

According to Weiss Ratings Inc. of Jupiter, Fla., Arkansas Blue Cross and Blue Shield of Little Rock was one of the strongest HMO and health insurers in the state for the third quarter of 2005. ABCBS had an A+ rating, or “excellent.”

Weiss Ratings is an independent analysis company that rates financial services firms, mutual funds, stocks and insurance companies. Its safety ratings are based on an analysis of risk-adjusted capital, historical profitability, quality of investments, liquidity and stability.

Other companies in the strong category that provide health insurance in the state included State Farm Life Insurance Co. of Illinois; New York Life Insurance Co. of New York; and Northwestern Mutual Life Insurance Co. of Wisconsin.

The Natural State was home to one of the five weakest HMO and health insurers, Southern Pioneer Life Insurance Co., which came in with a D rating, or “weak.” Other weak insurers included Jefferson National Life Insurance Co. and Constitution Life Insurance Co., both of Texas; Life Insurance Co. of North America of Pennsylvania; and United Security Life Insurance Co. of Illinois.

Weiss Ratings also said that life and health insurers’ investment profits were up 224 percent for the first nine months of 2005, up to $1.8 billion from $553 million for the same period of 2004.