Major Rating Factors:
Weak overall results on stability tests (1.6 on a scale of 0 to 10) including weak risk diversification, weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 10.2% of capital. Fair profitability index (3.8) with operating losses during 2020, 2022, 2023, 2024 and the first three months of 2025. Average return on equity over the last five years has been poor at -0.2%. Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2020.
Other Rating Factors:
History of adequate reserve strength (7.0) as reserves have been consistently at an acceptable level. 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:
NC
Principal Investments:
Cash (89.2%), real estate (6.2%), investment grade bonds (0.4%), other (4.2%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
1033 Wade Avenue
Raleigh, NC 27605
Raleigh, NC 27605
Phone Number
(833) 401-0202
NAIC Number
15267
Website
Largest Affiliates
No affiliate information available.