Major Rating Factors: Weak overall results on stability tests (2.2 on a scale of 0 to 10) including weak RAC in prior years. The largest net exposure for one risk is high at 3.0% of capital. Strengths include potentially strong support from affiliation with Aspen Insurance Holdings Ltd. Poor long-term capitalization index (1.4) based on weak current RAC (severe and moderate loss scenarios).
Other Rating Factors: Fair reserve development (3.2) as the level of reserves has at times been insufficient to cover claims. In 2017 and 2018 the two year reserve development was 24% and 56% deficient respectively. Fair profitability index (4.0) with operating losses during 2017, 2018, 2019 and 2020. Average ROE over the last five years has been poor at -7.6%. Good liquidity (5.6) 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: Fire (9.6%), comm multi (6.9%), med mal (3.8%), other (79.6%)
Licensed in: All states, the District of Columbia and Puerto Rico
Principal Investments: Investment grade bonds (73.1%), cash (8.1%), non investment grade bonds (3.8%), other (15.1%)