A.M. Best Rating Rationale

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

Rating Rationale

The rating of Delta Dental of Tennessee (DDTN) 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.

DDTN offers dental products throughout Tennessee; however, a majority of its membership is in three core cities: Nashville, Memphis and Knoxville. DDTN 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 DDTN 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.

Five year rating history

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