AM Best Affirms Credit Ratings of UnitedHealth Group Incorporated and Its Subsidiaries
OLDWICK, N.J., August 28, 2026--AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" (Excellent) and the Long and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH]. Concurrently AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) of the health and dental insurance subsidiaries of UnitedHealth Group, collectively referred to as UnitedHealthcare.
In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Centurion Casualty Company (Centurion Casualty) (Omaha, NE). The outlook of all these Credit Ratings (ratings) is stable.
The ratings of UnitedHealthcare reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM).
UnitedHealthcare's strong balance sheet strength assessment is supported by strong risk-adjusted capital, as measured by Best's Capital Adequacy Ratio (BCAR). The moderation in risk-adjusted capitalization from historical levels reflects lower operating earnings and reduced profitability in 2025, although statutory capitalization remains solid and is managed within the organization's targeted range. Invested assets remain conservative, being held predominantly in investment-grade fixed-income securities and cash and short-term investments. The company's liquidity remains favorable, supported by operating cash flows, a short-duration investment portfolio and significant cash balances, supplemented by internal credit facilities for the majority of its statutory entities. Improving earnings during 2026 are expected to support UnitedHealthcare's capital generation.
UnitedHealthcare's strong operating performance assessment reflects overall favorable underwriting and net income results, although earnings remain below historical levels following the significant deterioration experienced in 2025. The decline in 2025 earnings was driven primarily by elevated medical expenses in Medicare Advantage, along with broader medical cost pressures and government program funding challenges. However, operating trends have improved materially during the first half of 2026 as strategic market exits, benefit redesign, pricing discipline and medical cost management actions have begun to improve profitability. UnitedHealthcare's second-quarter 2026 operating margin improved to 4.6% from 2.4% in the prior-year period; as a result, UnitedHealth Group lowered its full-year medical care ratio outlook and raised its 2026 operating earnings guidance for UnitedHealthcare. AM Best expects margins to continue improving during 2026, although Medicare Advantage membership contraction and Medicaid funding pressure remain important considerations.