Major Rating Factors: Weak profitability index (2.8 on a scale of 0 to 10) with operating losses during 2020. Return on equity has been fair, averaging 5.6% over the past five years. Vulnerable liquidity (0.5) as a spike in claims may stretch capacity.
Other Rating Factors: Weak overall results on stability tests (2.1) including weak risk adjusted capital in prior years. Fair long-term capitalization (3.6) based on good current risk adjusted capital (moderate loss scenario) reflecting significant improvement over results in 2021. History of adequate reserve strength (6.9) as reserves have been consistently at an acceptable level.
Stability Factors: G - Fast asset or premium growth. L - Past results on our liquidity tests. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (63.2%), homeowners (34.9%), comm multi (1.8%)
Licensed in: All states except DC, NE, NM, SD, WY, PR
Principal Investments: Investment grade bonds (87.1%), other (12.9%)