Major Rating Factors: Excellent profitability (7.2 on a scale of 0 to 10) despite a decline in earnings during 2021. Excellent capitalization index (10.0) based on good current risk-adjusted capital (severe loss scenario). Furthermore, this high level of risk-adjusted capital has been consistently maintained in previous years. Excellent overall results on stability tests (7.7) based on steady enrollment growth, averaging 3% over the past five years, consistent premium and capital growth in the last five years.
Other Rating Factors: Excellent liquidity (7.0) with ample operational cash flow and liquid investments. Good quality investment portfolio (6.8) containing junk bond exposure equal to 56.4% of capital.
Principal Lines of Business: --
Licensed in: AZ
Principal Enrollment Breakdown: --