Major Rating Factors: Fair reserve development (4.8 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair overall results on stability tests (4.4).
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. Excellent liquidity (7.3) with ample operational cash flow and liquid investments. Weak profitability index (2.9) with operating losses during 2017, 2019, 2020 and the first six months of 2022. Average return on equity over the last five years has been poor at -7.6%.
Stability Factors: G - Fast asset or premium growth. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Homeowners (81.1%), fire (3.8%), other (15.1%)
Licensed in: FL, MA
Principal Investments: Investment grade bonds (100.0%)