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OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
“a” of Delta Dental of California (DDC) (San Francisco, CA) and its
affiliates, Delta Dental Insurance Company (DDIC) (Wilmington,
DE), Delta Dental of Pennsylvania (DDP) (Mechanicsburg, PA) and Delta
Dental of New York, Inc. (DDNY) (New York, NY). These companies are
collectively known as Delta Dental of California Group. The outlook of
the Credit Ratings (rating) is stable.

The ratings reflect Delta Dental of California Group’s balance sheet
strength, which AM Best categorizes as very strong, as well as its
strong operating performance, neutral business profile and appropriate
enterprise risk management.

The ratings also reflect the group’s strongest level of risk-adjusted
capital on a consolidated basis, as measured by Best’s Capital Adequacy
Ratio (BCAR), continued capital growth driven primarily by strong
earnings, favorable liquidity and access to additional sources of
contingent liquidity. However, DDC and DDP provide capital support to
their subsidiaries and affiliates through surplus notes rather than
contributed capital.

The group has reported strong operating results due to favorable
underwriting income combined with increasing investment income,
resulting in a high level of earnings. Favorable enrollment growth over
the past several years primarily is composed of its fully insured dental
lines. Premiums have declined from the prior year, which was primarily
due to a larger government contract converting to self-funding.

The Dentegra Group, Inc. (Dentegra) is a non-profit Delaware holding
company formed by DDC and DDP to oversee and coordinate the strategic
activities of both entities and their affiliates. DDC is the largest
member company of the Delta Dental Plans Association, a trade
organization for Delta Dental member companies operating in all 50 U.S.
states, the District of Columbia, U.S. Virgin Islands and Puerto Rico.
DDC, DDP, DDIC and DDNY, together with their affiliate companies, is one
of the largest providers of dental benefits in the nation with coverage
extended to more than 36 million people. The companies are active
participants in numerous state exchanges for small groups and
individuals, as stand-alone dental policies or through medical

In addition, the organization provides dental coverage to Medicaid
recipients in a number of states. AM Best notes that in late 2018,
following the departure of its chief executive officer, Dentegra
completed a reorganization of its top management team, and more
recently, hired a new chief operations officer. This has resulted in a
smaller leadership team while maintaining continuity.

The ERM program is supported by a well-established governance structure,
with culture and risk management controls. The organization utilizes the
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
ERM framework as its guiding principles for its ERM efforts. The top
risk scenarios are stress tested to ascertain if the capital position
exceeds minimum levels, and solvency was maintained to meet management’s
business plan. AM Best will continue to monitor its practices for future

This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
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Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its


Jeffrey Lane
Senior Financial Analyst
+1 908
439 2200, ext. 5567

[email protected]

Christopher Sharkey
Manager, Public Relations
908 439 2200, ext. 5159

[email protected]

Joseph Zazzera, MBA
+1 908 439 2200,
ext. 5797

[email protected]

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

[email protected]