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| Andrew C. Corbin, President/CEO |
Our country has experienced several major changes since I last reported to you in the summer of 2008. We watched our stock market tumble as a world-wide, financial recession raised unemployment, devalued portfolios and created uncertainty.
We concluded one of our nation’s most historic presidential campaigns by electing a new leader who promises to reform our health care delivery system. Even though we live in an era of change, let me assure you that one thing has not changed: Blue Cross and Blue Shield of Kansas remains a financially strong company committed to being the best health insurer in Kansas for years to come.
Financial strength and World-Class service
Strong investment income the past couple of years has allowed Blue Cross to contribute to our policyholders’ reserves even while experiencing annual, underwriting losses. In 2008, the opposite occurred. Underwriting gains offset losses we experienced in investment income, keeping our policyholders’ reserves strong and our company financially stable.
We will continue to follow our long-standing, conservative investment philosophy. A.M. Best, considered the most authoritative rating source in the insurance industry, reaffirmed our “A” or “excellent” rating for 2009.
Throughout 2008 we continued our commitment to providing our members superior service. I am pleased that we were recognized for a second consecutive year with a World Class in Customer Service Award by Service Quality Measurement Group. Additionally, we received awards for outstanding service to health care providers and for our business ethics.