Major Rating Factors:
Weak profitability index (0.9 on a scale of 0 to 10) with 107.6 million in losses in the last three years. Average return on equity over the last five years has been poor at -39.8%. Weak overall results on stability tests (2.4) based on a significant -21% decrease in enrollment during the period, a steep decline in premium revenue in 2021. Rating is influenced by the weak financial results of Prosano Inc. Excellent capitalization (7.2) based on good current risk-adjusted capital (severe loss scenario) reflecting significant improvement over results in 2020.
Other Rating Factors:
Excellent quality investment portfolio (7.4) containing little or no exposure to mortgages, junk bonds, or unaffiliated stocks. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
Principal Lines of Business:
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Licensed in:
AZ
Principal Enrollment Breakdown:
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