Major Rating Factors: Weak profitability index (1.7) with operating losses during each of the last five years.
Other Rating Factors: Weak overall results on stability tests (0.0) including negative cash flow from operations for 2021. The largest net exposure for one risk is excessive at 208.8% of capital. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. F - Negative cash flow. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fin guar/surety (100.0%)
Licensed in: All states except PR
Principal Investments: Investment grade bonds (95.6%), cash (1.3%), other (3.1%)