Major Rating Factors: Fair profitability index (3.5 on a scale of 0 to 10) with operating losses during 2019 and 2020. Return on equity has been fair, averaging 7.4% over the last five years. Good overall results on stability tests (5.6). Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Excellent capitalization index (7.6) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels. Excellent quality investment portfolio (9.9) containing small junk bond exposure.
Principal Lines of Business: --
Licensed in: WI
Principal Enrollment Breakdown: --