Major Rating Factors: Poor long-term capitalization (1.3 on a scale of 0 to 10) based on fair current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2021. Weak overall results on stability tests (1.4) including weak risk adjusted capital in prior years and negative cash flow from operations for 2021. The largest net exposure for one risk is conservative at 1.2% of capital.
Other Rating Factors: Fair reserve development (3.2) as the level of reserves has at times been insufficient to cover claims. In 2020 and 2021 the two year reserve development was 20% and 22% deficient respectively. Good overall profitability index (5.4) despite operating losses during 2017 and 2020. Return on equity has been low, averaging 2.3% over the past five years. Superior liquidity (9.1) with ample operational cash flow and liquid investments.
Stability Factors: C - Past results on our Risk-Adjusted Capital tests. 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: Homeowners (88.8%), fire (2.4%), other (8.8%)
Licensed in: FL
Principal Investments: Cash (51.1%), investment grade bonds (42.9%), common stock (4.6%), non investment grade bonds (0.5%), other (1.0%)