Major Rating Factors: Weak profitability index (0.3 on a scale of 0 to 10) with 142.0 million in losses in the last five years. Average return on equity has been extremely poor. Weak capitalization index (1.6) based on weak current risk-adjusted capital (severe loss scenario). Weak overall results on stability tests (1.9) based on rapid enrollment growth during the past five years, rapid premium growth over the last five years.
Other Rating Factors: Weak liquidity (0.7) as a spike in claims may stretch capacity. Excellent quality investment portfolio (9.7) containing small junk bond exposure.
Principal Lines of Business: --
Licensed in: AL, AZ, CO, LA, NE, OK, SC, TX, UT, VA, WA
Principal Enrollment Breakdown: --