Major Rating Factors: Poor long-term capitalization index (0.9 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Weak overall results on stability tests (1.4) including excessive premium growth and weak risk adjusted capital in prior years.
Other Rating Factors: Fair reserve development (3.3) as reserves have generally been sufficient to cover claims. In 2020, the two year reserve development was 29% deficient. Good overall profitability index (5.3). Good expense controls. Good liquidity (6.8) 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. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (96.0%), other (4.0%)
Licensed in: CT, DC, FL, MD, MA, NJ, NY, NC, PA, RI, TX, VT, VA
Principal Investments: Common stock (32.2%), investment grade bonds (25.3%), cash (3.4%), non investment grade bonds (2.4%), preferred stock (0.1%), other (36.6%)