Major Rating Factors: Good quality investment portfolio (5.4 on a scale of 0 to 10) despite substantial holdings of BBB bonds in addition to junk bond exposure equal to 74% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Good overall profitability (6.8). Return on equity has been excellent over the last five years averaging 23.8%. Good liquidity (6.9).
Other Rating Factors: Good overall results on stability tests (5.0) good operational trends, good risk adjusted capital for prior years and excellent risk diversification. Strong capitalization (7.4) 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 (40.7%), group health (28.3%), group life (23.6%), ind health (2.9%), ind annuities (0.5%), other (4.0%)
Licensed in: All states, the District of Columbia and Puerto Rico