A.M. Best Rating

Delta Dental of Tennessee: Rated A-(excellent) by A.M. Best Company

Rating Rationale

The rating of Delta Dental of Tennessee reflects its favorable operating performance, strong risk-based capitalization and enrollment growth within Tennessee. Partially offsetting these factors are the high business concentration and strong competitive environment.

Delta Dental offers dental products throughout Tennessee; however, a majority of its membership is in three core cities: Nashville, Memphis and Knoxville. Delta Dental continues to improve its profitability in both risk and non-risk segments by growing membership and reducing administrative expenses. The increase in capital is a result of favorable earnings trends. A.M. Best believes that Delta Dental should continue to maintain a leading market share in its service area because of its strong networks which provide a substantial competitive advantage in accessing dental providers and ultimately controlling dental costs.

Rating History

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