Major Rating Factors: Fair overall capitalization (4.0 on a scale of 0 to 10) based on mixed results -- excessive policy leverage mitigated by good risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated somewhat during past years. Fair quality investment portfolio (3.7) with large holdings of BBB rated bonds in addition to junk bond exposure equal to 57% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair overall results on stability tests (4.9).
Other Rating Factors: Excellent profitability (7.1) despite operating losses during the first three months of 2021. Excellent liquidity (7.1).
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. I - Past results on our Investment Safety Index. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: --
Licensed in: All states except NY, PR