Major Rating Factors:
Fair reserve development (4.7 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. In 2023 the two year reserve development was 15.5% deficient. Fair overall results on stability tests (3.8) including negative cash flow from operations for 2023 and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 5.7% of capital. Good long-term capitalization index (5.4) based on good current risk adjusted capital (severe loss scenarios) reflecting some improvement over results in 2021.
Other Rating Factors:
Good overall profitability index (5.4) despite operating losses during 2023. Return on equity has been fair, averaging 8.7% over the past five years. Good liquidity (6.3) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
G - Fast asset or premium growth.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (49.0%), homeowners (43.0%), fin guar/surety (6.8%), fire (1.2%)
Licensed in:
AZ, CA, FL, ID, IN, MN, NC, NM, NV, OH, OK, SC, TN, TX, UT, VA, WA
Principal Investments:
Investment grade bonds (80.9%), cash (12.5%), common stock (5.1%), other (1.5%)
Corporate Info
Group Affiliation
LD Investments LLC
Investment Rating
--
Company Address
1000 Aviara Parkway
Carlsbad, CA 92011
Carlsbad, CA 92011
Phone Number
(877) 365-1648
NAIC Number
10004
Website
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