|[February 07, 2013]
A.M. Best Affirms Ratings of Vision Service Plan and Its Subsidiaries
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 (News - Alert)) 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
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
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.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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