Major Rating Factors: A history of deficient reserves (1.9 on a scale of 0 to 10). Underreserving can have an adverse impact on capital and profits. In four of the last five years reserves (two year development) were between 22% and 46% deficient. Weak overall results on stability tests (1.6).
Other Rating Factors: Fair long-term capitalization index (4.1) based on fair current risk adjusted capital (severe loss scenario). Good overall profitability index (6.3). Good expense controls. Return on equity has been good over the last five years, averaging 10.1%. Excellent liquidity (8.3) 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 (50.9%), work comp (40.9%), other (8.3%)
Licensed in: FL
Principal Investments: Cash (89.5%), investment grade bonds (10.0%), non investment grade bonds (0.5%)