AM Best Confirms EyeMed Insurance Company’s Credit Ratings


OLDWICK, NJ, January 19, 2022–(BUSINESS WIRE)–AM Best Affirmed EyeMed Insurance Company (EIC) (Phoenix, AZ) Financial Strength Rating of A (Excellent) and Issuer Long-Term Credit Rating (Long-Term ICR) of “a” (Excellent). The outlook for credit ratings (ratings) is stable. EIC, together with EyeMed Vision Care, LLC, are the North American-based entities of EssilorLuxottica, the ultimate parent company.

The ratings reflect the strength of EIC’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate management of business risks. The ratings take into account 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 a very high level, as measured by Best’s capital adequacy ratio (BCAR). Risk-adjusted capitalization was strengthened by continued favorable operating performance. In addition, the company has good financial flexibility, as well as the ability to maintain a very strong capitalization despite historic dividend payments. In addition, EIC maintains high underwriting leverage relative to industry averages. The balance sheet strength rating also reflects EIC’s portfolio of low-risk and highly liquid assets, as well as favorable cash flow from operations.

EIC has posted strong earnings in recent years. Earnings strengthening in 2020 was driven by lower utilization and delayed care due to the COVID-19 pandemic. However, operating performance moderated in 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. Additionally, the company continues to experience strong premium growth, reflecting its brand recognition and affiliation with EyeMed Vision Care, LLC. The ratings also reflect the organization’s established market presence and strong overall market share in vision care. EIC is strategically important to EssilorLuxottica’s vertically integrated business model as the primary insurance entity. The ratings also take into account EssilorLuxottica’s well-established presence in the global market and its overall creditworthiness, which supports the insurance business.

EssilorLuxottica is a key player in the managed vision care industry in the United States through EyeMed Vision Care, LLC, with the operations of this entity and other health insurance plans supported by EIC. Additionally, the ratings recognize 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 ratings information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Ratings Activity webpage. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Preliminary Credit Scores, and AM Best’s press releases, please see Guide to the Proper Use of Best Scores and Ratings.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by AM 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
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200 ext. 5159
[email protected]

Joseph Zazzera, MBA
+1 908 439 2200 ext. 5797
[email protected]

Jim Peavy
Director, Communications
+1 908 439 2200 ext. 5644
[email protected]


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