Major Rating Factors:
Poor long-term capitalization index (0.3 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the good range over the last two years. A history of deficient reserves (2.2) that places pressure on both capital and profits. In 2023 and 2024 the one year reserve development was 40.2% and 56.6% deficient respectively. Weak profitability index (0.6) with operating losses during 2021, 2022, 2023, 2024 and the first six months of 2025. Average return on equity over the last five years has been poor at -60.8%.
Other Rating Factors:
Weak overall results on stability tests (1.6) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2024. Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Work comp (100.0%)
Licensed in:
GA, KY, NC, SC, VA
Principal Investments:
Investment grade bonds (61.6%), cash (28.2%), other (10.2%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
3605 Glenwood Avenue
Raleigh, NC 27612
Raleigh, NC 27612
Phone Number
(919) 832-0811
NAIC Number
13098
Website
Largest Affiliates
No affiliate information available.