Major Rating Factors:
Poor long-term capitalization index (2.6 on a scale of 0 to 10) based on weak current risk adjusted capital (moderate loss scenario). Weak profitability index (0.7) with operating losses during each of the last five years. Average return on equity over the last five years has been poor at -121.7%.
Other Rating Factors:
Vulnerable liquidity (0.8) as a spike in claims may stretch capacity. Weak overall results on stability tests (1.8) including weak results on operational trends and negative cash flow from operations for 2022. Fair reserve development (4.7) as reserves have generally been sufficient to cover claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (99.8%), homeowners (0.2%)
Licensed in:
All states except ID, KS, ME, MA, MI, MN, NJ, NY, RI, SD, VT, WI, WY, PR
Principal Investments:
Cash (51.0%), investment grade bonds (38.8%), other (10.2%)