Major Rating Factors:
Weak profitability index (2.4 on a scale of 0 to 10) with operating losses during 2020, 2021, 2022 and 2023. Average return on equity over the last five years has been poor at -38.0%. Weak overall results on stability tests (2.9) including excessive premium growth, weak risk adjusted capital in prior years and negative cash flow from operations for 2024. The largest net exposure for one risk is high at 3.5% of capital. Fair reserve development (3.7) as the level of reserves has at times been insufficient to cover claims. In four of the last five years reserves (two year development) were between 16.5% and 110.2% deficient.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2020. Excellent liquidity (7.6) 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.
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:
TN
Principal Investments:
Investment grade bonds (78.0%), cash (15.7%), non investment grade bonds (5.7%), other (0.6%)
Ratios
Premium to Surplus
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Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
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Combined Ratio
--
Cash From Underwriting
--
Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
Cover Me Ins Agency Of NJ Inc
Investment Rating
--
Company Address
424 Church Street
Nashville, TN 37219
Nashville, TN 37219
Phone Number
(843) 872-3310
NAIC Number
15836
Website
Largest Affiliates