S&P Counts Few Carrier Insolvencies

The health carriers that failed in 2004 were Primehealth of Alabama Inc., Mobile, Ala.; Family Health Care Plus Inc., Jackson, Miss.; and Metrowest Health Plan Inc., Fort Worth, Texas.

A total of 19 carriers of all types, including property-casualty, were put under regulatory supervision in 2004, down from 28 in 2003 and 39 in 2002.

The S&P analysts note that the total number of carriers that fail each year has declined steadily since 2000.

“This suggests an increasingly favorable environment for insurers in general,” the S&P analysts write in their report. “However, the extent and consistency of improvement in 2004 was better than expected.”