Major Rating Factors:
Weak overall results on stability tests (0.5 on a scale of 0 to 10) including potential drain of affiliation with American Mutual Share Group and weak results on operational trends. Good overall profitability index (6.6). Excellent expense controls.
Other Rating Factors:
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. Ample reserve history (8.3) that helps to protect the company against sharp claims increases. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
AL, AZ, CA, ID, IL, IN, ME, MT, NV, NH, OH, TX
Principal Investments:
Investment grade bonds (75.9%), common stock (14.7%), cash (5.7%), real estate (0.3%), other (3.4%)