VAULT RECIPROCAL EXCHANGE
Major Rating Factors:
Weak profitability index (1.7 on a scale of 0 to 10) with operating losses during 2018, 2019, 2021 and 2022. Vulnerable liquidity (2.1) as a spike in claims may stretch capacity.
Other Rating Factors:
Weak overall results on stability tests (2.3) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is excessive at 8.0% of capital. Fair long-term capitalization index (4.2) based on fair current risk adjusted capital (severe loss scenario). Fair reserve development (4.6) as reserves have generally been sufficient to cover claims.
Stability Factors:
F - Negative cash flow.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (69.9%), personal/comm auto (17.4%), other (12.6%)
Licensed in:
All states except AL, CA, ID, KS, MN, NY, WI, PR
Principal Investments:
Investment grade bonds (42.9%), cash (16.0%), non investment grade bonds (2.0%), other (39.1%)