Major Rating Factors: Poor current capitalization (1.4 on a scale of 0 to 10) based on excessive policy leverage and weak risk adjusted capital (moderate loss scenario), although results have slipped from the good range over the last year. Low quality investment portfolio (0.0) containing large holdings of BBB rated bonds in addition to significant exposure to junk bonds. Exposure to mortgages is significant, but the mortgage default rate has been low. Weak profitability (1.4).
Other Rating Factors: Weak overall results on stability tests (1.2) including weak risk adjusted capital in prior years, weak results on operational trends. Excellent liquidity (9.2).
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. I - Past results on our Investment Safety Index. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: --
Licensed in: All states except CT, FL, ME, NH, NJ, NY, RI, VT, PR