Major Rating Factors:
Fair overall results on stability tests (3.7 on a scale of 0 to 10) including excessive premium growth and negative cash flow from operations for 2024. Good profitability index (5.0) with small operating losses during 2020 and 2021. Excellent expense controls. Return on equity has been low, averaging 1.2% over the past five years. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Other Rating Factors:
Ample reserve history (7.0) that can protect against increases in claims costs. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Reinsurance (100.0%)
Licensed in:
TX
Principal Investments:
Investment grade bonds (88.0%), cash (3.7%), other (8.3%)
Corporate Info
Group Affiliation
Western Service Contract Corporation
Investment Rating
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Company Address
5515 East La Palma Avenue
Anaheim, CA 92807
Anaheim, CA 92807
Phone Number
(800) 303-5000
NAIC Number
11168
Website
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Largest Affiliates