Major Rating Factors: Good quality investment portfolio (6.3 on a scale of 0 to 10) despite large holdings of BBB rated bonds in addition to moderate junk bond exposure. Exposure to mortgages is significant, but the mortgage default rate has been low. Good overall profitability (5.2). Despite its volitility, return on equity has been excellent over the last five years averaging 29.1%. Good overall results on stability tests (5.5) good operational trends and excellent risk diversification.
Other Rating Factors: Fair liquidity (4.0). Strong capitalization (7.5) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: I - Past results on our Investment Safety Index. L - Past results on our liquidity tests.
Principal Lines of Business: Ind annuities (62.7%), group annuities (21.7%), ind health (0.2%), group life (0.1%), other (15.3%)
Licensed in: All states, the District of Columbia and Puerto Rico