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A.M. Best Places Ratings of CHA HMO, Inc. Under Review With Positive Implications

Category:

Monday, January 30, 2006 9:24 am EST

Dateline:

OLDWICK, N.J.

Public Company Information:

NYSE:
HUM
OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 30, 2006--A.M. Best Co. has placed the financial strength rating of B+ (Very Good) under review and has assigned an issuer credit rating of "bbb-" to CHA HMO, Inc. (CHA Health) (Lexington, KY). Both ratings are under review with positive implications. These positive rating implications follow Humana Inc.'s (NYSE: HUM) announcement that its subsidiary, Humana Health Plan, Inc. (Humana) (Louisville, KY) has signed a letter of agreement with CHA Health to acquire CHA Health.

Humana's creditworthiness and excellent financial strength are driving CHA Health's rating outlook change. The transaction is expected to close at the end of first quarter 2006, subject to regulatory approval. Terms of the agreement were not disclosed.

The transaction expands Humana's presence and commitment across Kentucky. The company will compete for commercial business throughout Kentucky, especially in the areas outside the population centers of Louisville, Lexington and northern Kentucky.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

For current Best's Ratings, independent data and analysis on more than 1,050 health companies and A.M. Best groups, please visit www.ambest.com/health.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.

Contact:

A.M. Best Co.
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
Rachelle Striegel, 908-439-2200, ext. 5378
rachelle.striegel@ambest.com
or
Analysts:
Yeva Sverdlova, 908-439-2200, ext. 5733
yeva.sverdlova@ambest.com
Christian Miles, 908-439-2200, ext. 5026
christian.miles@ambest.com