CNC · 10-Q · 2026Q1 · Full report

Regulatory capital & dividend restrictions

CENTENE CORP · 2026-04-28 · Importance 12 · Surprise 6

Centene's regulated insurance subsidiaries must comply with state statutory capital requirements, dividend restrictions and other regulatory constraints that limit transfers of cash to the parent without regulatory approval. For NAIC‑filing subsidiaries the aggregate risk‑based capital (RBC) level as of December 31, 2025 was in excess of 350% of the Authorized Control Level and management expects to maintain an aggregate RBC level in excess of 350% during 2026. Specific state requirements cited include California Knox‑Keene tangible net equity (TNE) rules and New York contingent reserve requirements; during Q1 2026 Centene received $206 million of dividends and made $355 million of capital contributions to its regulated subsidiaries. Management warns these regulatory restrictions can limit timing and amount of dividends, loans or other transfers and therefore limit the use of subsidiary cash to pay Centene corporate obligations.

Key facts

• Aggregate risk-based capital (RBC) level for subsidiaries as of December 31, 2025 was in excess of 350% of the Authorized Control Level and the company expects to maintain RBC in excess of 350% during 2026.
• During Q1 2026, the company received dividends of $206 million from regulated subsidiaries and made $355 million of capital contributions to regulated subsidiaries.
• As of March 31, 2026, each health plan was in compliance with the RBC requirements enacted in those states.