Major Rating Factors: Good quality investment portfolio (5.9 on a scale of 0 to 10) despite large holdings of BBB rated bonds in addition to junk bond exposure equal to 64% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Good overall profitability (6.6). Excellent expense controls. Good liquidity (5.8).
Other Rating Factors: Good overall results on stability tests (6.7) excellent operational trends and excellent risk diversification. Strong capitalization (8.2) 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 health (11.0%), ind annuities (9.9%), group annuities (1.5%), group health (0.4%), other (77.3%)
Licensed in: All states except PR