Major Rating Factors: Good quality investment portfolio (5.1 on a scale of 0 to 10) despite substantial holdings of BBB bonds in addition to moderate junk bond exposure. Exposure to mortgages is significant, but the mortgage default rate has been low. Good profitability (5.0). Return on equity has been fair, averaging 7.0%. Good liquidity (6.8).
Other Rating Factors: Good overall results on stability tests (5.2) despite excessive premium growth good operational trends, good risk adjusted capital for prior years and excellent risk diversification. Strong capitalization (7.3) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: I - Past results on our Investment Safety Index. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Group annuities (76.6%), ind health (5.3%), group health (2.1%), group life (1.0%), other (15.0%)
Licensed in: All states except NY