"Generally, for-profit health insurers operate in their local jurisdiction with a lower capital and surplus level, reporting lower RBC ratios, while their increased leverage leads to higher returns on equity. This management approach usually entails larger and more frequent contributions of capital to the insurer by its ultimate owners, as well as more frequent dividends being paid out by the insurer. In contrast, nonprofit or not-for-profit insurers have less access to outside capital and therefore must effectively manage business requirements and risk by holding more capital and surplus on their own balance sheet."  MORE >>