Major Rating Factors:
Fair overall results on stability tests (3.5 on a scale of 0 to 10). Rating is significantly influenced by the strong financial results of Health Care Service Corporation a Mutual Legal Reserve Co. Excellent overall capitalization (7.6) based on good current risk-adjusted capital (severe loss scenario) despite some fluctuation in capital levels. Excellent quality investment portfolio (7.3) containing small junk bond exposure.
Other Rating Factors:
Weak profitability index (0.5) with 501.8 million in losses in the last five years. Average return on equity has been poor at -43.9%. Weak liquidity (2.1) as a spike in claims may stretch capacity.
Principal Lines of Business:
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Licensed in:
All states except CT, HI, ME, NH, NJ, NY, VT
Principal Enrollment Breakdown:
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