AM Best Affirms Credit Ratings of Highmark Inc. and Its Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of Highmark Inc. (Highmark) (headquartered in Pittsburgh, PA) and its life/health (L/H) subsidiaries, collectively known as Highmark Inc. Group. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Highmark’s dental subsidiaries, which operate under the United Concordia brand name. Lastly, AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) of Highmark’s $250 million of 6.125% senior unsecured notes due in 2041. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies)
The ratings reflect Highmark’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Highmark Inc. Group continues to maintain the strongest level of risk-adjusted capitalization, as measured by the Best’s Capital Adequacy Ratio (BCAR). The group’s investment portfolio is highly liquid and primarily consists of investment-grade, fixed-income securities that are conservatively managed to protect capital. Highmark has moderate financial leverage and good financial flexibility supported by borrowing capacity from the Federal Home Loan Bank and from bank syndicated line of credit structures if needed. Furthermore, Highmark has accessed the capital markets for borrowings in the form of senior unsecured notes. The most recent issuance was in April 2026 to prefund debt maturing in May. Highmark’s financial leverage, as calculated by AM Best, was 23.1% at year-end 2025. Although interest coverage was considered weak in 2025 due to operating and net losses, it is expected to improve as earnings return to profitability. Additionally, Highmark completes stress testing and economic capital modeling to deploy capital throughout the organization effectively.
