Major Rating Factors:
Weak profitability index (2.7 on a scale of 0 to 10) with operating losses during 2018, 2019 and 2021. Average return on equity over the last five years has been poor at -1.7%. Weak overall results on stability tests (2.2) including weak financial strength of affiliated IAT Reinsurance Co Ltd and weak results on operational trends. The largest net exposure for one risk is conservative at 1.0% of capital.
Other Rating Factors:
Fair reserve development (3.1) as reserves have generally been sufficient to cover claims. In 2019, the two year reserve development was 21% deficient. Good overall long-term capitalization (6.3) based on good current risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated during prior years. Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (9.8%), comm multi (8.5%), product liab. (2.4%), fire (1.8%), other (77.5%)
Licensed in:
All states except AL, AZ, CO, DC, DE, FL, GA, IN, IA, KY, LA, MA, MI, MS, NJ, NM, NY, OH, OK, RI, WY, PR
Principal Investments:
Investment grade bonds (46.2%), common stock (32.3%), non investment grade bonds (8.0%), cash (7.2%), preferred stock (5.8%), other (0.5%)
Corporate Info
Group Affiliation
IAT Reinsurance Co Ltd
Investment Rating
--
Company Address
12801 Pierce Street Suite 200
OMAHA, NE 68144
OMAHA, NE 68144
Phone Number
(919) 831-8170
NAIC Number
10349
Website
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