CHICAGO--(BUSINESS WIRE)--Aug. 10, 2006--Fitch Ratings today published the updated criteria for its quantitative ratings model for U.S. health insurers.

In 2002 Fitch initiated a program to provide more comprehensive coverage to U.S. health insurers by issuing Quantitative-Insurer Financial Strength (Q-IFS) ratings. Fitch believes its updated methodology presents a current view of our Q-IFS model, which has been updated to align with other Q-IFS models introduced in 2005 and used in other sectors and countries. Fitch believes the updated model provides an enhanced view of each insurer's financial strength.

Fitch expects to assign and publish ratings on approximately 220 health insurers within the next month. This includes companies that have existing Q-IFS ratings as well as several insurers that had previously not been rated by Fitch.

In the fall of 2005, Fitch introduced life/annuity and property casualty quantitative models in both the U.S. and in several European markets. The structure of these models has now been used as the basis to update the Q-IFS health model.

In conjunction with update of Fitch's health Q-IFS methodology, approximately 40% of the existing health Q-IFS ratings from year-end 2004 will change. Approximately three-quarters of the total rating changes are anticipated to be upgrades.

Of those ratings that change, approximately two-thirds of the rating changes can be attributed to the model update. Roughly 70% of rating changes driven by the model update are expected to be upgrades, with the balance being downgrades. The vast majority of rating changes are expected to be one rating category.

This initiative reflects Fitch's ongoing commitment to provide comprehensive coverage of the U.S. health insurance sector to meet growing demand for our ratings. These ratings continue to provide an invaluable tool in assessing the financial strength of the U.S. health insurance companies, particularly those companies that do not have broad rating coverage from all agencies.

Fitch believes the model to be rigorous, transparent, and analytically consistent with the interactive analysis undertaken in more traditional rating reviews.

A copy of the criteria report, 'The Updated U.S. Health Insurer Quantitative Insurer Financial Strength Ratings Methodology,' is available on the Fitch Ratings web site at www.fitchratings.com under 'Insurance,' and 'Criteria Reports'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Contacts
Fitch Ratings, Chicago
Douglas L. Meyer, 312-368-2061
Christopher A. Grimes, 312-368-3263
or
Media Relations:
Kenneth Reed, 212-908-0540 (New York)

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