C
New Home Warranty Ins Co A RRG
AuroraCO
Rating Date
June 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
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Major Rating Factors: Weak profitability index (2.7 on a scale of 0 to 10) with operating losses during 2022, 2024 and the first three months of 2025. Return on equity has been low, averaging 2.4% over the past five years. Weak overall results on stability tests (2.2) including weak risk diversification. The largest net exposure for one risk is excessive at 11.9% of capital. Good long-term capitalization index (6.0) based on good current risk adjusted capital (severe loss scenarios), although results have slipped from the excellent range during the last year.
Other Rating Factors: History of adequate reserve strength (5.6) as reserves have been consistently at an acceptable level. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Other (100%)
Licensed in: DC
Principal Investments: Investment grade bonds (92.9%), cash (5.0%), other (2.1%)
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Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
13900 East Harvard Avenue
Aurora, CO 80014
Phone Number
(720) 747-6000
NAIC Number
13792
Largest Affiliates
No affiliate information available.