Major Rating Factors:
Weak overall results on stability tests (2.5 on a scale of 0 to 10) including weak results on operational trends. The largest net exposure for one risk is high at 4.4% of capital. Fair long-term capitalization index (3.7) based on fair current risk adjusted capital (severe loss scenario).
Other Rating Factors:
Fair reserve development (3.1) as the level of reserves has at times been insufficient to cover claims. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 31% and 46%. Good overall profitability index (6.2). Good expense controls. Return on equity has been good over the last five years, averaging 10.5%. Excellent liquidity (7.8) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (52.9%), work comp (38.8%), other (8.3%)
Licensed in:
FL
Principal Investments:
Cash (78.9%), investment grade bonds (20.6%), non investment grade bonds (0.5%)