Market Overview

A.M. Best Revises Outlooks to Positive for AultCare Health Insuring Corporation and Its Subsidiary

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A.M. Best has revised the outlooks to positive from stable and
affirmed the Financial Strength Rating of B++ (Good) and the Long-Term
Issuer Credit Rating of "bbb+" of AultCare Health Insuring Corporation
and its subsidiary, AultCare Insurance Company. Both companies
are domiciled in Canton, OH. Collectively, the group is referred to as AultCare
Health Group
(AultCare).

The Credit Ratings (ratings) reflect AultCare's balance sheet strength,
which A.M. Best categorizes as very strong, as well as its adequate
operating performance, limited business profile and marginal enterprise
risk management (ERM).

The revision of the outlooks reflects AultCare's very strong overall
balance sheet assessment and A.M. Best's expectation that the group will
continue to improve its risk-adjusted capitalization, based on a trend
of solid operating performance and lack of dividend payments to its
parent, Aultman Health Foundation.

The rating affirmations recognize the group's consistently favorable
operating performance, which has shown material improvement over the
last two years. AultCare's underwriting results in 2017 reached their
highest level in the last five years. Additionally, risk-adjusted
capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), has
improved in recent years through strong surplus growth and reduced
business risk. AultCare's balance sheet strength is supported by its
strong liquidity and cash flow measures. These rating factors are offset
by the group's limited business profile, primarily due to business and
geographic concentrations, and a marginal ERM program. AultCare has a
developed ERM framework and reporting process; however, the program is
still emerging as the company works to establish a solid governance
structure, as well as risk tolerance levels and appetite statements.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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