Major Rating Factors:
Poor long-term capitalization index (1.8 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the good range over the last two years. Fair profitability index (3.8) with operating losses during 2023, 2024 and the first six months of 2025. Return on equity has been low, averaging 0.3% over the past five years. Fair overall results on stability tests (4.5) including weak risk adjusted capital in prior years and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 6.2% of capital.
Other Rating Factors:
Ample reserve history (9.5) that helps to protect the company against sharp claims increases. Superior liquidity (9.2) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (39.9%), homeowners (17.4%), personal/comm auto (7.0%), comm multi (6.6%), farmowners (1.0%), fin guar/surety (0.4%), other (27.8%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (77.0%), common stock (22.2%), cash (0.8%)
Corporate Info
Group Affiliation
Ernest Rady Trust
Investment Rating
--
Company Address
15025 Innovation Drive
San Diego, CA 92128
San Diego, CA 92128
Phone Number
(858) 350-2400
NAIC Number
10024
Website
Largest Affiliates