UNIVERSAL P&C INS CO
Major Rating Factors:
A history of deficient reserves (1.0 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 63% and 38% deficeint. Weak profitability index (2.5) with operating losses during 2019, 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -21.3%.
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 (4.7) based on fair current risk adjusted capital (moderate loss scenario). Fair liquidity (4.1) 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:
Homeowners (94.9%), fire (0.6%), other (4.5%)
Licensed in:
AL, DE, FL, GA, HI, IL, IN, IA, MD, MA, MI, MN, NH, NJ, NY, NC, PA, SC, TN, VA, WI
Principal Investments:
Investment grade bonds (79.5%), common stock (4.3%), real estate (2.6%), preferred stock (0.5%), cash (0.5%), other (12.6%)