Major Rating Factors: Poor long-term capitalization index (2.3 on a scale of 0 to 10) based on weak current risk adjusted capital (moderate loss scenario). Weak profitability index (2.9) with operating losses during 2017, 2018 and 2020. Average return on equity over the last five years has been poor at -3.6%.
Other Rating Factors: Weak overall results on stability tests (2.3) including weak risk adjusted capital in prior years. The largest net exposure for one risk is high at 3.9% of capital. Fair reserve development (4.7) as reserves have generally been sufficient to cover claims. Good liquidity (5.4) 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. G - Fast asset or premium growth. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Reinsurance (100.0%)
Licensed in: All states except CA, IA, ME, NM, NY, WY, PR
Principal Investments: Investment grade bonds (89.8%), non investment grade bonds (2.7%), other (7.5%)