Health Sector Outlook Rosy, Raters Say
Historically strong and sustainable operating margins contributed to Standard & Poor’s positive mid-year outlook for the health insurance sector.[@@]
The move represented an upgrade from stable.
“Bolstering this perspective is a moderation in the cyclical nature of the industry’s earnings and a generally firm price environment,” the report stated. “Counterproductive price competition exists only in selected geographics and products.”
The report also said that “relative calm” prevails in the political and regulatory environment.
Consolidation continues in the industry with 10 of the largest companies accounting for 59% of the commercial membership.