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AM Best Affirms Credit Ratings of EyeMed Insurance Company

·3-min read

OLDWICK, N.J., January 19, 2022--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a" (Excellent) of EyeMed Insurance Company (EIC) (Phoenix, AZ). The outlook of the Credit Ratings (ratings) is stable. EIC, along with EyeMed Vision Care, LLC, are the North America-based entities of EssilorLuxottica, the ultimate parent.

The ratings reflect EIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings consider EIC’s strategic importance to EssilorLuxottica, as well as the comprehensive operational support provided by its parent company.

The ratings also reflect EIC’s risk-adjusted capitalization at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). Risk-adjusted capitalization has been enhanced by consistently favorable operating performance. In addition, the company has good financial flexibility, as well as the ability to maintain very strong capitalization despite historical dividend payments. Furthermore, EIC maintains high underwriting leverage relative to industry averages. The balance sheet strength assessment also reflects EIC’s low-risk and highly liquid asset portfolio, as well as favorable operating cash flow.

EIC has reported solid earnings in recent years. Earning strengthening in 2020 was driven by decline in the utilization and deferral of care due to the COVID-19 pandemic. However, operating performance tempered through the first nine months of 2021 due to higher utilization. Based on its five-year average return on equity ratio, EIC continues to outperform its peer composite. Furthermore, the company continues to experience strong premium growth, reflective of its brand recognition and affiliation with EyeMed Vision Care, LLC. The ratings also reflect the organization’s established market presence and solid overall market share in the vision care space. EIC is strategically important to EssilorLuxottica’s vertical integrated business model as its primary insurance entity. The ratings also consider EssilorLuxottica’s well-established global market presence and overall creditworthiness, which supports the insurance operations.

EssilorLuxottica is a key player in the U.S. managed vision care business through EyeMed Vision Care, LLC, with business from this entity and other health insurance plans assumed by EIC. In addition, the ratings acknowledge EIC’s well-established ERM program with a fully developed risk management framework and committee structure.

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Jennifer Asamoah
Senior Financial Analyst
+1 908 439 2200, ext. 5203

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

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

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

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