Major Rating Factors: Weak profitability index (1.4 on a scale of 0 to 10) with operating losses during 2017, 2019, 2020 and 2021. Average return on equity over the last five years has been poor at -9.2%. Weak overall results on stability tests (2.3) including negative cash flow from operations for 2021. The largest net exposure for one risk is high at 4.0% of capital.
Other Rating Factors: Fair reserve development (3.7) as reserves have generally been sufficient to cover claims. Good liquidity (6.5) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. 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.
Stability Factors: F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Reinsurance (100.0%)
Licensed in: FL
Principal Investments: Investment grade bonds (81.9%), non investment grade bonds (2.7%), cash (1.0%), preferred stock (0.2%), other (14.2%)