Major Rating Factors:
Weak profitability index (1.3 on a scale of 0 to 10) with modest operating losses during 2019, 2022 and 2023. Average return on equity over the last five years has been poor at -11.4%. Weak overall results on stability tests (1.8) based on a steep decline in premium revenue in 2023, a significant -42% decrease in enrollment during the period and poor risk diversification due to the company's size. Excellent capitalization index (10.0) based on excellent current risk-adjusted capital (severe loss scenario). However, risk-adjusted capital has reached as low as the weak level during recent years.
Other Rating Factors:
Excellent quality investment portfolio (9.9) containing small junk bond exposure. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
Principal Lines of Business:
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Licensed in:
AZ, TX
Principal Enrollment Breakdown:
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
5120 Woodway Drive
Houston, TX 77056
Houston, TX 77056
Phone Number
(832) 856-6760
NAIC Number
15952
Largest Affiliates
No affiliate information available.