Major Rating Factors: Weak overall results on stability tests (2.3 on a scale of 0 to 10) including weak results on operational trends. Good long-term capitalization index (6.9) based on good current risk adjusted capital (moderate loss scenario). Moreover, capital has steadily grown over the last five years.
Other Rating Factors: Good liquidity (5.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Ample reserve history (9.4) that helps to protect the company against sharp claims increases. Excellent profitability (8.0) with operating gains in each of the last five years. Return on equity has been excellent over the last five years averaging 15.9%.
Stability Factors: R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (98.8%), acc & health (0.3%), homeowners (0.2%), other (0.7%)
Licensed in: CO, IL, IN, IA, KS, LA, MD, MO, NV, NJ, OH, PA, TN, TX, VA, WI
Principal Investments: Investment grade bonds (81.9%), common stock (16.6%), non investment grade bonds (0.1%), other (1.4%)