Major Rating Factors:
Poor long-term capitalization index (2.2 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the good range over the last two years. Weak profitability index (1.3) with operating losses during each of the last five years and the first three months of 2025. Average return on equity over the last five years has been poor at -25.8%. Weak overall results on stability tests (1.9) including weak results on operational trends, weak risk diversification and negative cash flow from operations for 2024. The largest net exposure for one risk is high at 4.6% of capital.
Other Rating Factors:
Fair reserve development (3.1) as the level of reserves has at times been insufficient to cover claims. In 2022 and 2024 the two year reserve development was 15.1% and 25.8% deficient respectively. Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
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.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (92.1%), personal/comm auto (2.6%), other (5.3%)
Licensed in:
DC, DE, MD, NC, PA, SC, VA
Principal Investments:
Investment grade bonds (77.4%), other (22.6%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
5280 Corporate Drive
Frederick, MD 21703
Frederick, MD 21703
Phone Number
(301) 663-9522
NAIC Number
14753
Website
Largest Affiliates
No affiliate information available.