Major Rating Factors:
Poor long-term capitalization index (1.2 on a scale of 0 to 10) based on weak current risk adjusted capital (severe and moderate loss scenarios). Weak profitability index (2.3) with operating losses during 2019, 2020, 2021 and 2022. Average return on equity over the last five years has been poor at -33.5%. Fair reserve development (3.7) as the level of reserves has at times been insufficient to cover claims. In 2020 and 2019 the two year reserve development was 28.5% and 62.2% deficient respectively.
Other Rating Factors:
Fair overall results on stability tests (4.0) including weak risk adjusted capital in prior years and negative cash flow from operations for 2023. The largest net exposure for one risk is acceptable at 2.8% of capital. Excellent liquidity (7.4) with ample operational cash flow and liquid investments.
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.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
NC
Principal Investments:
Investment grade bonds (66.9%), common stock (17.7%), cash (15.4%)
Corporate Info
Group Affiliation
None
Investment Rating
--
Company Address
26 Second Street
Edison, NJ 08837
Edison, NJ 08837
Phone Number
(833) 998-2500
NAIC Number
15947
Website
Largest Affiliates
No affiliate information available.