Major Rating Factors: A history of deficient reserves (0.9 on a scale of 0 to 10) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 64% and 48% deficeint. Weak profitability index (1.8) with operating losses during 2021. Average return on equity over the last five years has been poor at -2.5%.
Other Rating Factors: Weak overall results on stability tests (1.5) including weak results on operational trends. Fair long-term capitalization index (3.6) based on fair current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the good range over the last two years. Good liquidity (6.0) 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: Personal/comm auto (100.0%)
Licensed in: NY
Principal Investments: Investment grade bonds (95.6%), cash (3.2%), preferred stock (0.8%), common stock (0.5%)