A.M. Best Assigns Rating to Association D'Hospitalisation Canassurance and Canassurance...

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of A- (Excellent) to Association D'Hospitalisation Canassurance and Canassurance Compagnie D'Assurance (d/b/a Quebec Blue Cross and Ontario Blue Cross) (both of Montreal, Quebec). All ratings have a stable outlook.

Quebec Blue Cross and Ontario Blue Cross has demonstrated a positive financial performance, which has contributed to its excellent capital growth, and this trend is expected to continue over the medium term. Diversified product lines complementing the core health insurance business and strategic agreements with certain Blue Cross Plans have contributed to expansion into new marketplaces and solid growth of revenues.

Partially offsetting Quebec Blue Cross and Ontario Blue Cross' positive rating factors are the budgeted increases in administrative expenses and lower operating margins for 2006. Additionally, Quebec Blue Cross and Ontario Blue Cross will likely encounter strong competition in the Ontario market.

The company has excellent name recognition as a licensed Canadian Blue Plan, permitting it to be a strong player in the Montreal market with the potential for further growth in Ontario.

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