Fitch Ratings December 20, 2022
Fitch Ratings-Chicago/New York-20 December 2022: U.S. health insurers should be able to withstand the effects of high inflation and rising interest rates amid Fitch Rating’s expectation for a mild U.S. recession in 2023. The structural advantages afforded to health insurers within the broader healthcare system, business model diversification and stable key financial metrics are supportive of ratings. However, operating performance is expected to be challenged by commercial enrollment weakness and volatile utilization rates driven by ongoing waves of COVID-19 infections, a severe flu season and elevated cases of RSV.
Rising interest rates have a more muted effect on health insurer profitability versus other sectors such as life insurance, with gradual impact on interest income. However, large health insurers have meaningful...
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