Major Rating Factors:
Poor long-term capitalization index (2.2 on a scale of 0 to 10) based on fair current risk adjusted capital (severe loss scenarios) reflecting improvement over results in 2023. Weak profitability index (1.8) with operating losses during 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -18.6%. Weak overall results on stability tests (2.3) including weak risk adjusted capital in prior years, weak risk diversification and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 11.3% of capital.
Other Rating Factors:
Fair reserve development (3.5) as the level of reserves has at times been insufficient to cover claims. In 2023 and 2024 the two year reserve development was 20.3% and 39.6% deficient respectively. Excellent liquidity (8.3) with ample operational cash flow and liquid investments.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
DC
Principal Investments:
Common stock (41.1%), investment grade bonds (40.0%), cash (13.8%), preferred stock (1.9%), non investment grade bonds (1.2%), other (2.0%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
3740 Davinci Court
Norcross, GA 30092
Norcross, GA 30092
Phone Number
(770) 246-8535
NAIC Number
11806
Website
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Largest Affiliates
No affiliate information available.