Major Rating Factors:
Poor capitalization (0.5 on a scale of 0 to 10) based on weak risk adjusted capital (moderate loss scenario). Low quality investment portfolio (0.8) containing large holdings of BBB rated bonds in addition to junk bond exposure equal to 94% of capital. Weak profitability (1.9). Excellent expense controls. Return on equity has been low, averaging -13.6%.
Other Rating Factors:
Weak overall results on stability tests (0.5) including weak risk adjusted capital in prior years and negative cash flow from operations for 2022. Excellent Liquidity (10.0).
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
I - Past results on our Investment Safety Index.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
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Licensed in:
All states except ME, NY