Insurer rating agencies should watch efforts to contain the new coronavirus in China closely, but, at this point, the virus does not look as if it will hurt U.S. health insurers’ earnings or financial strength, according to Fitch Ratings.
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The rating agency put out a commentary to show investors and others what its rating analysts think about the possible effects of the new coronavirus on the U.S. health insurers it rates.
Most of those health insurers include room for the effects of a bad influenza season in their premiums, Fitch says in the commentary.
At U.S. health insurers, “premium rates do not incorporate an expectation for a pandemic,” Fitch says.
“However, Fitch does not currently expect the new coronavirus, referred to as ’2019-nCoV,’ to have a material adverse effect on the operating performance or overall credit profile of U.S. health insurers,” Fitch says.