Major Rating Factors:
A history of deficient reserves (1.1 on a scale of 0 to 10). Underreserving can have an adverse impact on capital and profits. In the last five years, reserves (two year development) fluctuated between 64% and 34% deficeint. Weak profitability index (1.5) with operating losses during 2021 and 2022. Average return on equity over the last five years has been poor at -5.7%.
Other Rating Factors:
Weak overall results on stability tests (1.5) including weak results on operational trends and negative cash flow from operations for 2022. Fair long-term capitalization index (3.4) based on fair current risk adjusted capital (severe and moderate loss scenarios). Fair liquidity (4.3) as cash resources may not be adequate to cover a spike in claims.
Stability Factors:
F - Negative cash flow.
L - Past results on our liquidity 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:
Personal/comm auto (100.0%)
Licensed in:
NY
Principal Investments:
Investment grade bonds (97.4%), cash (1.2%), preferred stock (0.8%), common stock (0.6%)