TOWER HILL SIGNATURE INS CO
Major Rating Factors:
Poor long-term capitalization index (0.6 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Weak profitability index (0.1) with operating losses during 2019, 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -69.4%.
Other Rating Factors:
Vulnerable liquidity (0.0) as a spike in claims may stretch capacity. Fair reserve development (3.4) as the level of reserves has at times been insufficient to cover claims. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 16% and 19%. Fair overall results on stability tests (3.7) including weak risk adjusted capital in prior years, weak results on operational trends and negative cash flow from operations for 2022.
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.
L - Past results on our liquidity tests.
Principal Lines of Business:
Homeowners (84.8%), fire (3.0%), other (12.2%)
Licensed in:
AR, FL, NC, OH, TX
Principal Investments:
Investment grade bonds (54.4%), non investment grade bonds (2.0%), common stock (0.2%), other (43.3%)