Major Rating Factors: Good quality investment portfolio (6.7 on a scale of 0 to 10) despite large holdings of BBB rated bonds in addition to junk bond exposure equal to 52% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Good overall profitability (5.1) although investment income, in comparison to reserve requirements, is below regulatory standards. Good liquidity (5.8).
Other Rating Factors: Good overall results on stability tests (6.7) excellent operational trends and excellent risk diversification. Strong capitalization (9.6) 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 annuities (9.7%), ind health (9.7%), group annuities (0.8%), group health (0.3%), other (79.6%)
Licensed in: All states except PR