AM Best Affirms Credit Ratings of EyeMed Insurance Company

OLDWICK, N.J., February 04, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of EyeMed Insurance Company (EIC) (Phoenix, AZ), a subsidiary of EssilorLuxottica [EL: PA]. The outlook of these Credit Ratings (ratings) is stable. 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 (ERM), as well as enhancement received from its ultimate parent organization, EssilorLuxottica. The balance sheet metrics are supported by EIC’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which the company has maintained in each of the past five years. The company’s balance sheet is enhanced further by solid liquidity measures, driven by an investment portfolio that is composed solely of cash and short-term investments.

The ratings also take into consideration EIC’s dependence on reinsurance, which is a core part of the organization’s strategy, and history of dividend payments, which have limited absolute capital expansion. Combined, these factors partially offset some of the favorable balance sheet components; however, AM Best notes the long-standing reinsurance relationships, and capital has grown at an 11.8% compound annual growth rate (CAGR), despite the dividends. EIC has reported continued earnings over the past five years and through the first nine months of 2024. The company continues to experience strong premium revenue growth and increased enrollment, as evidenced by its 14.1% CAGR. EIC has maintained strong profitability ratios, with its return on revenue consistently in the strong upper single-digit range and return-on-equity measures well into the high double-digit range.

EIC continues to benefit from its strong brand recognition, as well as the expertise of its ultimate parent. Additionally, the ratings reflect the company’s favorable market presence and overall market share as one of the leading writers within the vision care space. Furthermore, the ratings acknowledge EIC’s well-established ERM program with a fully developed risk management framework and committee structure, which is integrated with EssilorLuxottica. The rating lift provided to EIC factors in its strategic importance to its ultimate parent as its primary insurance operating entity. EssilorLuxottica is a key player in the U.S.-managed vision care business through EIC and EyeMed Vision Care, LLC, with business primarily assumed from other health insurance plans and written directly with employer groups.

The ratings also consider that EIC benefits from EssilorLuxottica’s financial strength and operating synergies between the organization’s various operating entities. Story Continues 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 Performance Assessments, 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 www.ambest.com. Copyright © 2025 by A.M. Best Rating Services, Inc.

and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: https://www.businesswire.com/news/home/20250204376955/en/ Contacts Jon Housel Financial Analyst +1 908 882 1898 [email protected] Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Joseph Zazzera Director +1 908 882 2442 [email protected] Al Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] View Comments