Major Rating Factors: Good quality investment portfolio (6.5 on a scale of 0 to 10) containing junk bond exposure equal to 56.4% of capital. Good overall results on stability tests (4.9). Rating is significantly influenced by the strong financial results of GuideWell Mutual Holding Corporation. Good liquidity (6.1) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors: Weak profitability index (2.2) with 42.6 million in losses in the last three years. Return on equity has been low, averaging 3.2% over the last five years. Excellent overall capitalization (7.0) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels.
Principal Lines of Business: --
Licensed in: PR, VI
Principal Enrollment Breakdown: --