Major Rating Factors:
Poor long-term capitalization index (2.0 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios). A history of deficient reserves (2.3) that places pressure on both capital and profits. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 15.1% and 29.6%. Weak profitability index (0.6) with operating losses during each of the last five years.
Other Rating Factors:
Vulnerable liquidity (2.9) as a spike in claims may stretch capacity. Fair overall results on stability tests (3.6) including weak risk adjusted capital in prior years and negative cash flow from operations for 2025. The largest net exposure for one risk is excessive at 7.5% of capital.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
Principal Lines of Business:
Comm multi (93.0%), other (7.0%)
Licensed in:
DC, DE, MD, NC, PA, SC, VA
Principal Investments:
Investment grade bonds (91.8%), other (8.2%)
Corporate Info
Group Affiliation
Frederick Mutual HoldingsInc
Investment Rating
--
Company Address
5280 Corporate Drive
Frederick, MD 21703
Frederick, MD 21703
Phone Number
(301) 663-9522
NAIC Number
14753
Website
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