Major Rating Factors: Good quality investment portfolio (5.3 on a scale of 0 to 10) despite substantial holdings of BBB bonds in addition to junk bond exposure equal to 80% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Good overall profitability (6.9). Return on equity has been excellent over the last five years averaging 26.6%. Good Liquidity (6.5).
Other Rating Factors: Fair overall results on stability tests (4.6) including excessive premium growth. Strong capitalization (7.3) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: G - Fast asset or premium growth. 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 (40.3%), group life (23.9%), group health (22.3%), ind health (2.1%), ind annuities (0.3%), other (11.1%)
Licensed in: All states, the District of Columbia and Puerto Rico