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.

Despite consistent premium and revenue growth, operating performance for Highmark, while historically favorable, has shown some volatility in recent years as its health insurance operations have been negatively impacted by industry-wide utilization and pharmacy trends. However, management implemented initiatives for 2026 to improve profitability. These actions combined with stabilizing medical trends have resulted in a rebound in operating performance through the first two quarters of 2026. These trends are expected to persist through year end 2026.

Highmark’s business profile is favorable and well-diversified by both geography and product offerings with core Blue Cross Blue Shield branded products. Blue Cross Blue Shield branded products are offered in multiple states that include Pennsylvania, West Virginia, Delaware, western and northeastern New York, and the greater Kansas City metropolitan area in Kansas and Missouri. In April 2026, Highmark affiliated with Blue Cross & Blue Shield of Kansas City (Blue KC), which expanded the organization’s geographic market. Adding to its product diversification, Highmark offers non-Blue branded stop-loss and dental products nationally.

Medical stop-loss products are sold via Highmark Insurance Group, which is comprised of HM Life Insurance Company, HM Life Insurance Company of New York and Bridge City Insurance Company. Dental products are sold through the United Concordia operations, which has a national dental product platform and has one of the largest dental networks in the United States. Highmark also offers technology services and support to other insurance companies via its enGen platform. The group benefits as part of an integrated delivery system with its affiliate, Allegheny Health Network, in its western Pennsylvania market.

Highmark Inc. Group has a well-developed and robust ERM program that utilizes a layered framework to create synergies between its strategy, financial plan, and business risks. Governance and oversight of the program involves all levels of management to continue monitoring existing and emerging threats to the group’s strategies. Stress testing and economic capital models are performed to provide informed and strategic decisions around capital management and business continuity.

Highmark’s parent, Highmark Health, is a diversified organization with both the Highmark insurance operations and a large provider system in western Pennsylvania, Allegheny Health Network. At year-end 2025, Highmark reported more than $32 billion in revenue, of which more than 80% was derived from its insurance operations.

The ratings of United Concordia reflects the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, appropriate ERM and its strategic importance to the Highmark Inc. Group organization.

United Concordia’s maintains the strongest level of risk-adjusted capitalization, as measured by the BCAR. While earnings have consistently been positive for the group, capital growth is constrained by annual dividend payments to the parent. Revenue continues to grow, driven by enrollment increases, government contracts and network leasing agreements. Operating performance has remained favorable, although it has trended downward the past few years. Return on revenue was 4.1% for 2025 and return on equity was 17%. United Concordia provides dental coverage to almost 12 million members through its large nationwide dental network, as well as the TRICARE Dental Program and the Active Duty Dental Program, which provide dental services to over 3 million active duty service members and their families.

AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) with stable outlooks for Highmark Inc. and its following L/H subsidiaries:

  • HM Health Insurance Company

  • HM Life Insurance Company

  • HM Life Insurance Company of New York

  • Highmark Choice Company

  • Highmark West Virginia Inc.

  • Bridge City Insurance Company

AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) with stable outlooks for the following dental subsidiaries of Highmark Inc.:

  • United Concordia Companies, Inc.

  • United Concordia Insurance Company

  • United Concordia Insurance Company of New York

  • United Concordia Dental Plans of California, Inc.

  • United Concordia Dental Plans of Pennsylvania, Inc.

  • United Concordia Dental Plans, Inc.

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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