Major Rating Factors: Good quality investment portfolio (6.3 on a scale of 0 to 10) containing junk bond exposure equal to 92.8% of capital. Excellent liquidity (6.9) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair profitability index (4.0) with modest operating losses during 2018 and 2021.
Other Rating Factors: Fair overall results on stability tests (4.2). Rating is significantly influenced by the strong financial results of Humana Inc. Excellent overall capitalization (8.5) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels.
Principal Lines of Business: --
Licensed in: CA, KS, KY, MO, WA
Principal Enrollment Breakdown: --