Major Rating Factors:
Good liquidity (6.5 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.1) despite weak results on operational trends.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital has steadily grown over the last five years. Ample reserve history (7.7) that can protect against increases in claims costs. Excellent profitability (8.7) with operating gains in each of the last five years. Return on equity has been good over the last five years, averaging 11.5%.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (99.4%), other (0.6%)
Licensed in:
NJ
Principal Investments:
Investment grade bonds (97.8%), non investment grade bonds (1.3%), other (0.8%)