Major Rating Factors: Poor overall capitalization (0.0 on a scale of 0 to 10) based on excessive policy leverage and weak risk adjusted capital (severe loss scenario). Weak profitability (2.0). Excellent expense controls. Return on equity has been low, averaging -18.4%. Weak overall results on stability tests (0.0) including weak results on operational trends, weak policy risk diversification.
Other Rating Factors: High quality investment portfolio (9.8). Excellent liquidity (10.0).
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. D - Limited diversification of general business, policy, and/or investment risk. G - Fast asset or premium growth. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Ind annuities (8.6%), other (91.4%)
Licensed in: AZ, SD