Major Rating Factors: Poor long-term capitalization index (2.3 on a scale of 0 to 10) based on weak current risk adjusted capital (moderate loss scenario). A history of deficient reserves (1.5) that places pressure on both capital and profits. In four of the last five years reserves (two year development) were between 22% and 45% deficient.
Other Rating Factors: Weak profitability index (2.6) with operating losses during 2018, 2019 and 2020. Weak overall results on stability tests (1.0) including weak risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 12.6% of capital. Excellent liquidity (8.7) with ample operational cash flow and liquid investments.
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. D - Limited diversification of general business, policy, and/or investment risk. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (100.0%)
Licensed in: FL, NE, PA, VT
Principal Investments: Investment grade bonds (77.7%), cash (22.3%)