16 Insurers See Ratings Updates
Ratings Corner, September 25, 2013
Under Fitch's Insurance Rating Methodology, WellPoint Inc.'s (WLP) market position and size/scale characteristics are considered “large,” reflecting the company's leading market share in 14 states and significant scale benefits and operating efficiencies derived from its 36 million membership base and estimated $70 billion in annual revenues. Fitch believes that WLP's strong competitive position is directly linked to the company's right to use the Blue Cross and/or Blue Shield names and marks in 14 states.
WLP consistently produces large amounts of absolute earnings and strong and stable EBITDA-based revenue margins and net returns on average capital (ROAC) that are consistent with Fitch's guidelines for the company's current ratings.
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