Major Rating Factors: Weak profitability index (1.3 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 -10.4%. Weak overall results on stability tests (2.8) including weak results on operational trends and negative cash flow from operations for 2021. The largest net exposure for one risk is high at 4.1% 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 (9.9) 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%)